Dutch Court Orders Shell to Compensate for Oil Spills
A Dutch Court of Appeal has ruled that Shell’s Nigerian branch is responsible for damages caused by oil leaks in the Niger delta.
In its ruling, the Hague Court of Appeal ordered the oil giant to pay compensation to the local farmers affected by pipeline leaks in the villages of Oruma and Goi. Besides the compensation, the Court also ordered Shell Nigeria and its parent company headquartered in Hague to build better warning systems to detect future leakages early.
The case represents the first time a company and its foreign subsidiary have been tried in the Netherlands for breaching duty of care abroad. It could also lead to far-reaching complications for future suits brought against oil firms.
The court’s ruling also sets a precedent for where suits of this nature can be heard and may lead to an increase in the number of court procedures in the home nations of oil companies rather than the country where alleged pollution is occurring.
Commenting on the court’s ruling, Shell said in a statement:
“We continue to believe that the spills in Oruma and Goi were the result of sabotage. We are therefore disappointed that this court has made a different finding on the cause of these spills and in its finding that” Shell’s Nigeria unit is liable. Sabotage, crude oil theft, and illegal refining are a major challenge in the Niger Delta.”
Despite Shell’s claims of sabotage, the court said the oil company had not proven beyond reasonable doubt that saboteurs were responsible for the spills that affected Oruma and Goi villages. Hence, the company is responsible for the damages caused by the leaks in the affected areas. The court further said the amount of compensation would be determined at a later date.
Meanwhile, the court said a case over whether Shell was liable for an oil leak in Ikot Ada Udo village would continue. The court established that the spillage was due to sabotage. However, it is seeking to determine if the pollution caused by it has spread further and needs to be cleaned.
It will be recalled that a group of farmers launched a case against Shell in 2008, alleging widespread pollution. The case was launched by four farmers, Barizaa Dooh, Elder Friday Alfred Akpan, and Chief Fidelis A Oguru and Alali Efanga from Oruma .
The farmers said the leaks from Shell’s underground pipelines had cost them their means of livelihood as it contaminated land and waterways. Mr. Efanga and Mr. Dooh have died since the case was first filed.
The farmers were backed in the case by the environmental group, Friends of the Earth. Following the court’s ruling, the group’s Dutch branch took to social media to express their joy at gaining victory after thirteen years.
Shell can still appeal against the ruling at Netherland’s highest court.
