Nigeria’s Supreme Court ruled on Friday in favour of Shell Plc, granting the oil giant a hearing over an alleged oil spill in the Niger Delta. This decision comes after the Court of Appeal halted an asset sale by Shell and ordered a hefty judgment claim to be paid before considering its appeal.
The case stems from a 2020 High Court ruling in favour of communities in Egbalor Ebubu, Rivers State. The communities accused Shell of an oil spill that damaged waterways and farms, and the court ordered the company to pay N800 billion ($878 million) in compensation.
Shell appealed the High Court decision, but the Court of Appeal demanded that the company deposit the judgment sum into a court-controlled account before proceeding with the appeal. Additionally, the court ordered Shell to halt the disposal of its local assets until the Supreme Court issued its ruling, ensuring any potential compensation could be paid to the Niger Delta communities.
Mohammed Ndarani, lawyer for the communities, in a Reuters report said that the Supreme Court has now returned the case to the Court of Appeal. Notably, the Supreme Court ruled that the Court of Appeal did not fully examine the merits of Shell’s case and directed that the company be granted a hearing.
This case is being closely watched by the international oil industry, as it comes after the country’s oil regulator refused to approve Exxon Mobil’s $1.28 billion asset sale to Seplat Energy in 2022.
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