Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.

Less Ads, More Data, More Tools Register for FREE
George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’
George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’View Video
Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America
Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin AmericaView Video

Latest Share Chat

Pin to quick picksRDSA.L Share News (RDSA)

  • There is currently no data for RDSA

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Shell battles Nigerian communities in high-stakes London lawsuit

Fri, 06th Jan 2017 11:34

* Nigerian communities say domestic courts unfit to try case

* Shell says case is "uniquely" Nigerian issue

* Ruling may trigger other London cases unrelated to UK -lawyer

* Shell rules out settlement, denies spill responsibility

* Bodo clean-up has not started over eight years after spill

By Karolin Schaps and Libby George

LONDON, Jan 6 (Reuters) - A court in London will decide incoming weeks whether Royal Dutch Shell can face trialin the UK over oil spill allegations in Nigeria, a decision somelegal experts predict could attract more cases againstmultinationals in Britain.

The High Court will judge whether members from twocommunities, Bille and Ogale in Nigeria's oil-rich Delta region,can sue the Anglo-Dutch company in British courts.

The communities say Nigerian courts are unfit to hear thecase against Shell subsidiary Shell Petroleum DevelopmentCompany of Nigeria (SPDC). Shell says the case should be heardin Nigeria because the matter is "uniquely a Nigerian problem".

Shell also denies responsibility for the spills, which itsays were due to sabotage and illegal refining.

If the High Court rules in favour of the communities, somelegal experts say other claimants against British-basedmultinationals would be emboldened to pursue legal actionthrough the British courts.

Some legal experts also warned that a victory by thecommunities could encourage unscrupulous residents to let oilspills worsen at remote sites by denying clean-up access, aspayouts are often linked to the scale of the damage.

"This case brings home the message that multinationals mayincreasingly face claims in the English courts arising fromdisputes which have little or no connection to England," saidTom Cummins, a partner at law firm Ashurst.

The Bille and Ogale groups launched their claim just monthsafter Shell agreed a 55 million pound ($68 million) settlementin 2015 with another Nigerian group, the Bodo community.

That case covered two pipeline leaks in 2008, which Shellaccepted were its fault due to corrosion, and marked the largestever out-of-court settlement relating to Nigerian oil spills. [http://reut.rs/2hTxctf]

Law firm Leigh Day, which is representing the Bille andOgale communities and also brought the Bodo case in Londonagainst Shell, says Nigeria's court system is not robust enoughto give a fair ruling in reasonable time.

Leigh Day, which is licensed only to practise in Britain,has also raised concerns over whether companies will conductclean-up operations properly without international pressure.

"You've got a dual problem: the systemic ineffectiveness ofthe courts and the fact that people (in local communities) justcan't get the evidence together or even representation to takeon these companies," Daniel Leader, partner at Leigh Day, toldReuters.

For its part, the Nigerian government's National Oil SpillDetection and Response Agency defended the effectiveness of theNigerian court system, saying it had successfully sanctioned andsued several companies locally, including SPDC.

Shell said it settled the Bodo case in part because itadmitted responsibility for the spill, but never agreed that thecase should be tried in London.

It said it would fight to stem a potential landslide ofcases from groups whose lands Shell says were spoiled bysabotage, oil theft and illegal refining that are endemic acrossthe Delta.

"We fully intend to have this (jurisdictional issue) decidedby a trial judge, to determine the issue once and for all," saidGaurav Sharma, senior legal counsel for Shell's globallitigation team.

Shell said 92 percent of all oil spilled from SPDCfacilities in 2009-13 was a result of theft, sabotage or illegalrefining.

In part due to such attacks, the oil major is divestingpipelines and other onshore assets after more than 50 years ofoperations in Nigeria. [http://reut.rs/2iXsRDV]

FEW GOOD SOLUTIONS

The Bodo case was hailed by some as a victory forcommunities, but more than eight years after the spill, theclean-up has not yet begun.

Shell paid the agreed damages, but said the community deniedit access in August 2015 when work was set to begin - askinginstead for cash to do it themselves.

Barisi Kkabe, a Bodo youth leader, told Reuters thecommunity was unhappy with the contractor picked by Shell, and"out of fear that (the clean-up fund) may be misappropriated,decided that ... they should share it among the people".

An SPDC spokesman said the company was unable to meet theBodo community's request to distribute clean-up work to localcontractors because it was "not procedurally correct".

A United Nations Environmental Programme report into oilpollution in Nigeria's Ogoniland said communities should avoidprotracted negotiations over access to spill sites as delaysresult in far greater environmental damage.

"Communities deserve compensation for damages when it'sShell's fault," said Aaron Sayne of the Natural ResourceGovernance Institute, a non-profit group that advises nations onhow to manage oil, gas and mineral resources without financiallinks to the oil industry.

"But I don't think it's going to be easy for a foreign courtto get its head around how complicated it is." (Additional reporting by Anamesere Igboeroteonwu in Onitsha,Nigeria; Editing by Dale Hudson)

More News
27 Oct 2022 07:30

Shell announces $4bn share buyback as Q3 profits beat expectations

(Sharecast News) - Oil giant Shell announced a $4bn share buyback on Thursday as it posted better-than-expected third-quarter profits.

Read more
21 Apr 2022 11:53

Shell turning to China to offload Russian business - report

(Sharecast News) - Shell is reportedly looking to China as it looks to offload its Russian business.

Read more
15 Feb 2022 15:54

Shell preparing to sell North Sea gas fields - report

(Sharecast News) - Shell is reportedly preparing to launch the sale of its stakes in two clusters of gas fields in the southern British North Sea, part of an ongoing retreat of long-time producers from the ageing basin.

Read more
7 Feb 2022 10:52

Berenberg nudges up target price on Shell

(Sharecast News) - Analysts at Berenberg slightly raised their target price on oil and gas giant Shell from 2,350.0p to 2,375.0p on Monday, stating the firm was "on a roll".

Read more
31 Jan 2022 10:53

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

Read more
31 Jan 2022 07:48

LONDON MARKET PRE-OPEN: WeBuyAnyCar owner buys into Lookers

LONDON MARKET PRE-OPEN: WeBuyAnyCar owner buys into Lookers

Read more
28 Jan 2022 11:25

Shell's renewables boss steps down after less than two years

* Elisabeth Brinton leaves for new role, she says* Shell creates two new renewables leadership roles* Thomas Brostrøm to head renewables generation* Steve Hill to head energy marketingBy Ron BoussoLONDON, Jan 28 (Reuters) - Shell's head of renewable...

Read more
27 Jan 2022 16:14

UK earnings, trading statements calendar - next 7 days

UK earnings, trading statements calendar - next 7 days

Read more
26 Jan 2022 17:02

LONDON MARKET CLOSE: FTSE 100 soars ahead of Fed as oil, travel gain

LONDON MARKET CLOSE: FTSE 100 soars ahead of Fed as oil, travel gain

Read more
26 Jan 2022 14:36

China's Sinopec awards fewer cargoes in recent LNG tender

By Chen Aizhu and Marwa RashadSINGAPORE/LONDON, Jan 26 (Reuters) - Unipec, the oil and gas trading arm of China's Sinopec Corp has awarded fewer-than-planned cargoes in a recent tender to sell up to 45 cargoes of liquefied natural gas for 2022 del...

Read more
26 Jan 2022 12:16

LONDON MARKET MIDDAY: Markets brace for aggressive US Fed tightening

LONDON MARKET MIDDAY: Markets brace for aggressive US Fed tightening

Read more
26 Jan 2022 09:33

UPDATE 2-Commodity, bank stocks lead FTSE 100 higher; Playtech drops

* Oil and banking shares top gainers* Wizz Air reports Q3 loss, expects improvement in spring* FTSE 100 up 1.3%, FTSE 250 add 1.1% (Updates to market close)By Shashank Nayar and Ambar WarrickJan 26 (Reuters) - London's FTSE 100 rose on Wednesday wit...

Read more
26 Jan 2022 09:12

LONDON MARKET OPEN: Fresnillo drops on 2022 production warning

LONDON MARKET OPEN: Fresnillo drops on 2022 production warning

Read more
25 Jan 2022 21:13

UPDATE 1-U.S. awards 13 mln barrel exchange of crude from strategic reserve

(Adds details on sale, background on 50 million barrel SPR plan)WASHINGTON, Jan 25 (Reuters) - The U.S. Department of Energy said on Tuesday it had approved an exchange of 13.4 million barrels of crude oil from the Strategic Petroleum Reserve to ...

Read more
25 Jan 2022 20:10

U.S. awards exchange of 13 mln barrels of crude from strategic reserve

WASHINGTON, Jan 25 (Reuters) - The U.S. Department of Energy said on Tuesday it had approved an exchange of 13.4 million barrels of crude oil from the Strategic Petroleum Reserve to seven companies.The companies are Shell Trading US, 4.2 million ...

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.