Supreme Court Grants Hearing Of Shell’s Appeal In $878m Oil Spill Case

Nigeria’s Supreme Court has ruled in favour of Shell Petroleum Development Company of Nigeria Ltd. (SPDC Nig), granting it a hearing on the alleged oil spill case in the Niger Delta.

The Court of Appeal had halted an onshore asset divestment by the oil major and gave a  judgment ordering the company to pay $878 million to affected communities.

The Supreme Court’s decision, issued on Friday, called for a thorough examination of the case, citing a lack of review by the appellate court.

According to sources close to the case, the verdict which was delivered orally, will be officially documented within a week.

The legal battle, originating from a 2020 High Court ruling, accused Shell Nigeria of an oil spill causing damage to waterways and farms in the Egbalor Ebubu communities in Rivers State.

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Representatives of both parties have responded to the ruling. Mohammed Ndarani, the community’s lawyer, informed Reuters that the case has been returned to the Court of Appeal. Meanwhile, a spokesperson for SPDC Nig acknowledged the judgment, stating, “We note the Supreme Court’s judgment on SPDC’s appeal, and we are currently assessing its implications,” in a statement.

This decision marks a point in ongoing legal disputes against Shell Plc in Nigeria, prompting the company to reevaluate its operations. The legal standoff led to the temporary halt of asset divestment by its parent company, reflecting a broader shift of focus from onshore to deep-water drilling amid challenges of theft and vandalism in onshore operations impacting Nigeria’s oil production.