Thursday, 11 May 2023 04:32

Shell wins UK Supreme Court dispute over Nigeria oil spill devastation

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Shell Plc won its fight at the UK’s Supreme Court over a lawsuit into one of the largest oil spills off the coast of Nigeria after Britain’s top judges dismissed arguments that the oil giant could still be held responsible over a decade later.

The Bonga oil leak in 2011 — said to be the largest spill in the Niger Delta for at least 20 years — was an environmental “catastrophe” that caused billions of dollars of damage, a group of almost 28,000 Nigerians had argued. 

Lawyers for two of the Nigerian claimants said that the spill of some 40,000 barrels of oil, which happened during a transfer of oil between two vessels, wreaked havoc across communities. The two had attempted to argue that the oil spill could be considered a “continuing nuisance” allowing for statutory time limits to legal action to be extended.

But the panel of five judges rejected those arguments Wednesday.

“The leak was a one-off event or an isolated escape,” Judge Andrew Burrows said.

Shell said the ruling brings an end to the claims in England.

“It was clear from the start that these claims were unfounded and brought entirely out of time,” the company said in a statement. “While the 2011 Bonga spill was highly regrettable, it was swiftly contained and cleaned up offshore.”

Shell has a fraught history in the West African nation, where frequent spills and challenging relationships with local communities have led it to reassess the future of its onshore and shallow water operations. These leaks, many of which Shell blames on sabotage and theft rather than mechanical failure, have destroyed the livelihoods of fishing and farming populations in the south of the country and have led to ongoing legal battles in Nigeria, the UK and the Netherlands.

The case had the potential for broader ramifications for other lawsuits, with the judges considering whether oil giants can be held responsible for spills at sea until the oil has been cleaned up. 

When considering whether a leak can be considered a continuing nuisance, “the important point is that it is continuing day after day or on another regular basis,” the judges said.

 

Bloomberg

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