Dutch Court Ruling Forcing IOCs To Leave Niger Delta – Stakeholders

Stakeholders in the Niger Delta have asserted that the multinational oil companies (IOCs) are divesting their onshore assets and liabilities in the region because of the 2021 ruling of a Dutch court in the Hague.

The court had delivered a major victory to four Nigerian farmers in their 13-year-long effort to hold Shell’s Nigerian subsidiary accountable for oil spills on their lands.

The appellate court in the Hague took side with the farmers and environmentalists on most of their legal claims, ruling that the Nigerian subsidiary owes the farmers financial compensation for the oil spill pollution in two villages.

LEADERSHIP investigation revealed that there are fears that Dutch Appeal court judgement could further open doors for more litigations against the oil companies, especially in their home countries.

The IOCs had claimed that their reasons for divesting and heading offshore, was due to incessant sabotage of their facilities in the region, leading to loss of revenue to them and the Nigerian government.

But, speaking with LEADERSHIP, Goi in Gokana local government area of Rivers State, son of one of the farmers that took Shell to Dutch Court in 2008, Eric Bariza Dooh, said apart from the compensations, the IOCs would not be able to meet up with installing detection system in all their oil facilities.

Dooh is also by inheritance, the traditional ruler of Goi, a community that has remained a ‘ghost town’ for about 16 years due to devasting effect of oil spills in the community.

Also, an environmentalist, Fyneface Dumnamene Fyneface, said the multiplicity of litigations against the IOCs was the main reason why they were divesting their onshore assets and liabilities.

Fyneface, who is the executive director of Youth and Environment Advocacy Centre (YEAC-Nigeria) said the conditions given to the IOCs by the courts were beyond what they can handle.

He said: “The actual reason why they are divesting in the Niger Delta is because of the multiplicity of court cases against them over crude oil spills. It is beyond their imagination; it is beyond what they can handle.

“In fact, the remote cause of troubles of communities about oil spills’ compensation and clean up which they were managing. But, as long as the London Court gave a judgement that communities can now approach their home countries, to demand for justice when o spills occur.

“That became a big blow to them; that if they continue in the communities and all of them run to where they can get justice, that they will not be able to manage it. So, the best thing for them to do is to pull out. That is why you see then moving in droves. Shell is divesting everywhere and moving away.”

The environmentalist stated that although there will oil spills and pollution offshore, communities will have limited claims over the area where the spills occurred.

Fyneface said: “There will be spills and pollution offshore but at that point, when we look at issues of continental shelves, we look at issues of exclusive economic zones, we look the ocean and where they are going to, to an extent, communities will have limited claims over areas where spills occur.

“It is going to be something that will be between the state government, federal government and the oil companies. The federal government is world hand in hand with them because if they stop exploration, Nigeria will not have money again.

“No matter what happens at that level, the claims of communities will be minimal if not completely zero. Some states that have nautical miles into the river can lay some claims but are they ready to look at these things? It is only communities then can hold these people accountable.”