Nigerian communities are demanding 505 billion naira ($310 million) in damages from Shell, accusing the oil giant of violating a court order by proceeding with the sale of its onshore assets in the Niger Delta, according to court documents filed on Friday.
Shell is in the process of exiting Nigeria’s onshore oil and gas sector, having agreed in January to sell its operations to a consortium of five predominantly local companies for $2.4 billion. However, over 1,200 representatives from Ilaje communities in the Niger Delta have petitioned the Federal High Court in Abuja to block the transaction. They argue that Shell is breaching a December 2023 court ruling that suspended any asset sales until a pending compensation lawsuit is resolved.
The lawsuit claims Shell is responsible for an oil spill that has severely affected local waterways and farmland. Shell, however, has consistently argued that such spills are primarily due to oil theft and pipeline tampering.
The community’s legal documents assert that Shell should face penalties for proceeding with the asset sale despite the ongoing court orders and the ongoing suffering of the local residents.
Shell has yet to comment on the matter. The timing of the court’s hearing on the case remains uncertain.
The sale of Shell’s assets is still pending approval from the energy regulator and the petroleum minister. Shell has faced numerous lawsuits both domestically and internationally from communities seeking environmental restoration and compensation for damage caused by historical oil spills.
