Tag Archives: bush refineries Nigeria

Assigning Responsibility for Oil Leaks: Shell’s Deep Pockets

Royal Dutch Shell’s  Nigerian subsidiary has been ordered on January 29, 2021 by a Dutch court to pay compensation for oil spills in two villages in Nigeria…The case was first lodged in 2008 by four Nigerian farmers and Friends of the Earth Netherlands. They had accused Shell and its Nigerian subsidiary of polluting fields and fish ponds through pipe leaks in the villages of Oruma and Goi.

The Court of Appeal in the Hague, where Shell has its headquarters, also ordered the company to install equipment to safeguard against future pipeline leaks. The amount of compensation payable related to the leaks, which occurred between 2004 and 2007, is yet to be determined by the court.  The case establishes a duty of care for the parent company to play a role in the pollution abroad, in this case by having the duty to make sure there is a leak-detection system…

Shell argued that the leaks were caused by sabotage…

In recent years there have been several cases in U.K. courts related to whether claimants can take matters to a parent company’s jurisdiction. In 2019, the U.K. Supreme Court ruled that a case concerning pollution brought by a Zambian community against Vedanta, an Indian copper-mining company previously listed in the U.K., could be heard by English courts. “It established that a parent company can be liable for the actions of the subsidiary depending on the facts,” said Martyn Day, partner at law firm Leigh Day, which represented the Zambians.

The January 2021 case isn’t the first legal action Shell has faced related to pollution in Nigeria. In 2014, the company settled a case with over 15,000 Nigerians involved in the fishing industry who said they were affected by two oil spills, after claims were made to the U.K. High Court. Four months before the case was due to go to trial Shell, which has its primary stock-exchange listing in the U.K., agreed to pay 55 million British pounds, equivalent to $76 million…  

The January 2021  verdict tells oil majors that “when things go wrong they will be held to account and very likely held to account where their parent company is based,” said Mr. Day, adding that the ruling could spark more such actions.

Excerpts from Sarah McFarlane, Shell Ordered to Pay Compensation Over Nigerian Oil Spills, WSJ, Jan. 29, 2021

An Unforgettable Type of Pollution

May 2018: The environmental damage around the site of two Royal Dutch Shell oil spills in Nigeria a decade ago has worsened significantly after years of delay to cleanup efforts, according to a report that the oil giant has been accused of trying to shield from public view.  The spills from a ruptured Shell pipeline spewed thousands of barrels of oil over parts of the Bodo fishing community in the crude-rich Niger Delta. Although the company in 2015 reached an out-of-court settlement with the local community, admitting to liability and agreeing to pay £55 million, or around $80 million at the time, in compensation, controversy around the case has remained.

A United Nations body, in a 2011 report, found extensive environmental damage around Bodo. Four years later, an assessment to prepare the cleanup found soil contamination had worsened while cleanup efforts languished and illegal refining and oil theft added to pollution in the area, according to an academic paper published last month. That has left the community facing potentially toxic pollution and “catastrophic” damage to the environment, the paper said.  The 2015 analysis was commissioned by the Bodo Mediation Initiative, a consortium established to oversee the cleanup in the area. Shell is a member of the group along with local stakeholders.

At least one of the authors urged the findings to be widely distributed because they pointed to significant health risks to the local community. Kay Holtzmann, the cleanup project’s former director, said in a letter reviewed by the Journal that Shell had denied him permission to publish the study’s results in a scientific journal.

But the academic paper* said the site survey contained new facts. The average surface soil contamination in Bodo had tripled since the original U.N. probe,the paper said. Out of 32 samples taken from the top two inches of soil in the area around Bodo, only one was within Nigeria’s legally acceptable limit for oil contamination, the paper added.

Excerpts from Pollution Worsens Around Shell Oil Spills in Nigeria, Wall Street Journal, May 26, 2018.

*Sediment Hydrocarbons in Former Mangrove Areas, Southern Ogoniland, Eastern Niger Delta, Nigeria, Apr. 2018

Illegal Refineries in Nigeria

Nigeria’s military said on April 13, 2017 that it had destroyed 13 illegal refineries in the restive Niger Delta oil hub, in an operation in which two soldiers died in clashes with “sea robbers”.  Military authorities say there are hundreds of illegal refineries in the region, which process stolen crude from oil company pipelines.  The Nigerian government said last week that it plans to legalise illicit refineries as part of an attempt to bring peace to the production heartland of crude oil, but it is unclear when it will put the plan into action.  Major Abubakar Abdullahi, a military spokesman, said troops “discovered and destroyed 13 illegal refineries” on April 12, 2017 while on patrol in the Iyalama Adama axis of Rivers state. The two soldiers were killed in the Ijawkiri general area, in Rivers state, he said.Makeshift refineries, usually hidden in oil-soaked clearings, support tens of thousands of people locally.

Nigeria’s navy chief has said that 181 illegal refineries were destroyed in 2016, 748 suspects were arrested, and crude oil and diesel worth 420 billion naira ($1.3 billion) was confiscated. The military shut down around 50 bush refineries in the first few weeks of 2017.

Nigeria’s military destroys 13 illegal oil refineries, Reuters, Apr. 13, 2017