Shell told to pay Nigerians $1.5 billion

A Nigerian court on Feb. 24 ordered Royal Dutch Shell to pay $1.5 billion in damages for polluting the Niger delta, a fresh blow to the company which was already reeling from a kidnap crisis and a wave of sabotage against its installations. A federal high court in Port Harcourt, the heart of the country's oil industry, ruled that Shell must compensate communities in Bayelsa state for degrading their creeks and spoiling crops and fishing. The decision was a major victory for the Ijaw people–who have campaigned for compensation for more than a decade–and one of Shell's worst legal setbacks. Communities have repeatedly accused Shell of letting its oil spill into the rivers of the Niger delta, degrading the environment, spoiling crops and poisoning fish. Justice Okechukwu Okeke's ruling in Port Harcourt upheld a vote by Nigeria's senate in August 2004 to fine Shell $1.5 billion. Shell had argued that the parliamentary committee that made the original order in 2000 did not have the power to require payment. But the judge ruled that since both sides agreed to go before parliament, the order was binding. Shell in London said the company would not comment in detail until it had received the text of the judgment; "however, we believe that we will have strong grounds to appeal as independent expert advice demonstrates that there is no evidence to support the claims." It added that it remained committed to dialogue with the Ijaw people–a claim rejected by Ijaw leaders. Chief Malla Sasime, the ruler of the Ijaw Epie kingdom in Bayelsa, said: "Our people have gone through due process to get the judgment. They must pay the money or be ready to leave our land." Another Ijaw leader, Ngo Nac-Eteli, said Shell would be prevented from operating on Ijaw territory if it tried to buy time by appealing against the judgment.