Shell agrees $84m deal over Niger Delta oil spill

Oil giant Royal Dutch Shell has agreed to a $84m settlement with residents of the Bodo community

Baku. 7 January. REPORT.AZ/ Lawyers for 15,600 Nigerian fishermen say their clients will receive $3,300 each for losses caused by the spills, Report informs referring to BBC.

The remaining $30m will be left for the community, which law firm Leigh Day says was "devastated by the two massive oil spills in 2008 and 2009".

They say they affected thousands of hectares of mangrove in south Nigeria.

The settlement was announced by the Anglo-Dutch oil giant's Nigerian subsidiary SPDC.

"From the outset, we've accepted responsibility for the two deeply regrettable operational spills in Bodo," its managing director Mutiu Sunmonu said. Shell says that both spills were caused by operational failure of the pipelines.

However, the company maintains that the extent of environmental pollution in the area is caused by "the scourge of oil theft and illegal refining".

It also suggested that earlier settlement efforts had been hampered "by divisions within the community".

The law firm representing the Nigerian fishermen and their community, Leigh Day, described it as one of the largest payouts to an entire community after devastating environmental damage.

The price of fish, a local staple food, rose as much as tenfold and many fishermen had to find alternative ways to make a living, the report added. A separate UN study said local drinking water sources were also contaminated.

The two spills came from the same pipe on the Trans Niger Pipeline, operated by Shell, which takes oil from its fields to the export terminal at Bonny on the coast. It carries about 180,000 barrels of oil per day.

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