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Dutch Court Orders Shell To Pay Rivers, Bayelsa Farmers Over Oil Spills
A Dutch court has ordered the Nigerian subsidiary of Shell to pay compensation over oil spills in the Niger Delta, a ruling which could pave the way for more cases against multinational oil firms.
The Court of Appeal in The Hague, on Friday, ruled that the Nigerian arm of the British-Dutch company must issue payouts over a long-running civil case involving four Nigerian farmers who were seeking compensation, and a clean-up, from the company over pollution caused by leaking oil pipelines.
This is sequel to a matter instituted in the Netherlands by four fishermen from the impacted villages of Ikot Ada Udo, in Akwa Ibom State; Goi, Gokana Local Government Area in Rivers State; and Oruma, Ogbia Local Government Area in Bayelsa State.
Two separate oil spills from a Shell facility occurred in 2004 and 2008, polluting several fishing communities in the Niger Delta.
In the case, “four fishermen/farmers and Milieudefensie vs. Royal Dutch Shell and Shell Petroleum Development Company Limited”, relief sought included a declaration of Shell’s liability to the spills and destruction of fishponds being the source of income for the litigants.
It was, however, silent on the case of Ikot Ada Udo, in Akwa Ibom State, because of what it called “unclarity of the facts”.
The judgement, which was monitored virtually from Port Harcourt, has finally come after 13 years of painstaking litigation instituted by farmers in Goi community in Ogoni, Rivers State; and Oruma community in Ogbia, Bayelsa State, who took Royal Dutch Shell to court in 2008.
The farmers sought the intervention of the court after several failed attempts to bring Shell to book in Nigerian courts.
The communities also sought a declaratory judgement for clean-up and payment of compensation for loss of fishing ponds, income and livelihoods, and preventive measures to stop oil spills from Shell’s aged pipelines from destroying their farmlands and fishponds in the future.
In its judgment, the court held Shell’s Nigerian subsidiary, SPDC, liable for two leaks that spewed oil over an area of a total of about 60 football pitches in two villages, saying that it could not be established “beyond a reasonable doubt” that saboteurs were to blame.
The Hague Appeals Court ruled that sabotage was to blame for an oil leak in another village.
However, it said that the issue of whether Shell can be held liable “remains open” and the case will be continued as the court wants clarification about the extent of the pollution and whether it still has to be cleaned up.
Under Nigerian law, which was applied in the Dutch civil case, the company is not liable if the leaks were the result of sabotage.
“Shell Nigeria is sentenced to compensate farmers for damages,” the court said in its ruling, which can be appealed via the Dutch Supreme Court.
The amount of compensation will be established at a later date. The court did not specify how many of the four farmers would receive compensation.
The court did not hold Shell’s parent company, which is based in the Netherlands, directly responsible.
However, it ruled that Shell’s parent company and its Nigerian subsidiary must fit a leak-detection system to a pipeline that caused one of the spills.
An activist said the verdict would be greeted with “relief and joy” by farmers in Nigeria and could “open the floodgates” for many other similar cases.
“Hundreds of people have queued up to sue Shell for contaminating the Niger Delta,” the activist said, citing cases brought against Shell in the UK and the Netherlands.
“I spoke to an activist a short while ago who said, ‘This is just the beginning’, and a lot of analysts also believe [the ruling] will open the floodgates to so many litigations against oil production companies that have been operating in Nigeria.”
The case was initiated in 2008 by the farmers and the Friends of the Earth campaign group, who were seeking reparations for lost income from contaminated land and waterways in the Niger Delta region, the heart of the Nigerian oil industry.
The spills concerned were between 2004 and 2007, but pollution from leaking oil pipelines remains a big problem in the Niger Delta.
“Tears of joy here. After 13 years, we’ve won,” the Dutch branch of Friends of the Earth tweeted following Friday’s ruling.
The head of the NGO’s Dutch branch, Donald Pols described the court’s decision as “fantastic news for the environment and people living in developing countries.
“It means people in developing countries can take on the multinationals who do them harm,” he said.
Shell argued that saboteurs were responsible for leaks in underground oil pipes that have polluted the delta.
The company also argued that it should not be held legally responsible in the Netherlands for the actions of a foreign subsidiary, meaning Shell Nigeria.
After the ruling, Shell said it continues to believe the spills were caused by sabotage, adding it was dismayed that its Nigerian subsidy – the Shell Petroleum Development Company of Nigeria (SPDC) – was judged to be culpable.
“We are … disappointed that this court has made a different finding on the cause of these spills and in its finding that SPDC is liable,” the company said in a statement.
The Nigerian subsidiary added: “Like all Shell-operated ventures globally, we are committed to operating safely and protecting the local environment.”
Chima Williams of Friends of the Earth Nigeria ( Environmental Rights Action), says, “Today’s decisions will determine whether or not transnational companies will be obliged to respond in a swift and positive way when environmental complaints are made from their host country.
“This case has taken so long that two claimants are no longer alive. But the problems caused by the immense oil spill from Shell’s pipelines have still not been resolved after 13 years. It hurts that this can happen.
“The court judgment today has set a new standard that will give hope to ordinary citizens that no matter how powerful a company is, there will always be a day of reckoning.”
Donald Pols of Friends of the Earth Netherlands (Milieudefensie) said:
“After almost 13 years, we now know that Nigerians will finally receive justice and Shell will not succeeded in completely shirking its responsibility for the pollution. “For the inhabitants of the Niger Delta, it is crucial that their land is cleaned up and their lost crops and livelihoods are compensated by the guilty party: Shell.
“This victory has heralded the beginning of a new era in which large multinationals such as Shell can no longer go about their business lawlessly but are accountable for their entire operations, including overseas.”
Channa Samkalden, lawyer for the Nigerian farmers and Friends of the Earth Netherlands, adds:
“What we have already achieved in all these years of litigation is that Dutch companies are being held accountable for their behaviour abroad.
“The fact that Friends of the Earth Netherlands and the Nigerian claimants succeeded in this is in itself groundbreaking. It is now a matter of waiting to see how the court rules on the liability of both parent company, Shell (RDS) and the subsidiary in Nigeria (SPDC).
Shell discovered and started exploiting Nigeria’s vast oil reserves in the late 1950s and has faced heavy criticism from activists and local communities overspills and for the company’s close ties to government security forces.
Friends of the Earth, which has supported the Nigerian farmers in their legal battle, argues that leaking pipes are caused by poor maintenance and inadequate security and that Shell does not do enough to clean up spills.
Rivers State Governor, Sir Siminalayi Fubara, has described the ongoing construction of the brand new 13.52-kilometre Ngo-Atlantic-Oyorokoto Road as a bold and visionary effort by his administration to open up the coastal region for economic growth and harness the full potential of the state’s blue economy.
The Governor made this remark during an inspection visit to the project site in Andoni Local Government Area. The road, being constructed by Monier Construction Company (MCC), cuts through challenging coastal terrain and leads to a newly identified beachfront facing the Atlantic Ocean.
Governor Fubara explained that while the original plan was to construct a road leading to Oyorokoto Town and its popular beach, his administration decided to expand the project to create an entirely new route that would open access to another pristine beachfront.
“We are doing another inspection today. This particular one is a virgin road, 13.52 kilometres of a new pathway to the blue economy,” Governor Fubara stated.
“Initially, we were constructing a road to Oyorokoto Beach, one of the finest tourist centres in this area. But as we progressed, we discovered another beach directly facing the Atlantic Ocean. It became clear that we shouldn’t limit development to just one site. We want to harness this new beach front as part of our broader plan to develop the blue economy.”
The Governor emphasised that the project, once completed, will not only improve access to coastal communities but also stimulate tourism and economic activities, boosting revenue for Rivers State.
Describing the area’s difficult terrain as challenging, he commended the contractor for its dedication, and expressed confidence that the road would be completed and commissioned by March next year.
“You can see for yourself, it’s a brand-new road in a very difficult terrain, just like the one we saw yesterday. But I strongly believe we will overcome it. From what we’ve seen today, the contractor, MCC, is doing their best, and by next year, hopefully by March, we’ll have the cause to commission this project and give God all the glory,” the Governor affirmed.
Governor Fubara also visited Opobo/Nkoro Local Government Area to assess the progress of work on the Epellema axis of the ongoing 5.2km Kalaibiama-Epellema road project featuring a 450-meter bridge.
Rivers State Governor, Sir Siminalayi Fubara, has expressed satisfaction with the level of progress recorded on the ongoing Trans-Kalabari Road project, revealing that about 75 percent of the critical piling work has been completed.
Governor Fubara made this known while addressing journalists after an on-the-spot inspection of the 12.5-kilometre road project, which will connect the state capital to several Kalabari communities across the sea.
The Governor rode on a boat from a jetty at Rumuolumeni in Obio/Akpor Local Government Area through the rivers and creeks on the project route during the inspection.
The project was awarded to Lubrik Construction Company Limited, on May 15, 2024, with an initial 32-month completion timeline.
The Governor said the visit was aimed at verifying reports from the Ministry of Works regarding the project’s advancement. He commended the contractors for their dedication, and described the progress as “a true reflection of hard work and commitment to excellence.”
“The first phase of the project takes us to Bakana, and features four major river-crossing bridges and nearly five deck-on-pile structures. The terrain is difficult, and the engineering work required is complex. But to the glory of God, I can confirm that the reports I’ve been receiving are accurate. Almost 75% of the piling job, which is the most critical part of the project, has been achieved,” Governor Fubara said.
He emphasised that the Trans-Kalabari Road is one of the most technically demanding infrastructure projects in the state due to its challenging marine terrain but reaffirmed his administration’s resolve to deliver it on schedule.
Governor Fubara highlighted the strategic importance of the road in connecting the Kalabari Kingdom to Port Harcourt, and stimulating economic growth across riverine communities.
“This is a key project that will turn around the lives of the Kalabari people immediately it is concluded. By the grace of God, in the next six months, if we return here for inspection, we might be driving across the bridge,” he said.
Governor Fubara assured Rivers people that his administration remains focused on delivering transformative infrastructure projects that will improve lives and bring lasting development to rural communities.
“We have made a promise to our people to embark on projects that will change lives and bring development, and this is a testament to that commitment,” he added.
The Governor of Rivers State, Sir Siminalayi Fubara, says that the impact of flooding and erosion on the inhabitants of Rivers State, especially those living in coastal communities, are of great concerns to the government.
Governor Fubara lamented the consequences of flood on both human and biotic life, which sometimes lead to loss of life, property, and degradation of the environment.
The Governor made the remark in Port Harcourt during the launch of a book titled, ‘Coastal Zone Flooding And Erosion in Developing Communities, Principles, Cases and Strategies,” written by Emeritus Prof. Wiston Bell-Gam.
According to the Governor, who was represented by the Secretary to the State Government, Hon. Benibo Anabraba, his administration, would continue to undertake and encourage adaptation strategies to combat flooding.
In his words: “The Rivers State Government will continue to undertake and encourage adaptation strategies, such as construction of seawalls and breakers, canals and channels, restoring coastal ecology and ecosystem for coastal resilience and where necessary, the relocation of communities on the coastline.
“These issues are currently receiving the much needed attention and intervention by the recent approval of the construction of shoreline protection along the coastlines of more than five communities in Ogba/Egbema/Ndoni and Opobo/Nkoro LGAs respectively.”
“It is important that as stakeholders in the protection and preservation of marine environment, we all act and advocate for mitigation strategies such as reduction in emission of Green House Gasses that causes climate change and rise in sea levels. Let us promote the use of clean energy and against fossil fuel.
Governor Fubara further cautioned residents to desist from building on waterways.
“We also need to encourage our people to stop developing buildings on and along natural water courses, indiscriminate sea mining and dredging activities on our coastline without consideration for mangroves and swamps,” he stressed.
He appreciated the author for his advanced contributions to the body of knowledge in both Rivers State and globally.
Also speaking, a former Military Governor of the old Rivers State and Amayanabo of Twon Brass, King Alfred Ditte-Spiff, who was Royal Father at the Event, stated that the book was timely to enable stakeholders manage the challenges of global warming.
“Global warming is real. If it’s not addressed globally, a time will come coastal areas will find themselves under water. The coastline of Nigeria is shocking with many mangroves gone,” he noted.
The Reviewer of the Book, who is also the Vice Chancellor of Olusegun Agagu University of Science and Technology, Ondo State, Prof Temi Ologunorisa, explained that the 14-chapter book is timeous as it fills literary gaps between desire and available knowledge on coastal flood and erosion in developing communities.,
“A major beauty of the book that sets it apart is the detailed consideration of flood and erosion control from around the world,” he stated, adding that the book is based on detailed field investigation.