Niger Delta communities demand $310m from Shell, seek to halt asset sale

Nigerian communities are seeking N505 billion ($310 million) in damages from Shell, alleging that the company breached an existing court order by moving forward with a deal to sell its onshore assets in the Niger Delta, according to court documents revealed on Friday.

Shell announced its decision to exit Nigeria’s onshore oil and gas sector in January after agreeing to sell its operations to a consortium of five mostly local companies for $2.4 billion.

However, over 1,200 representatives from Ilaje communities in the Niger Delta have filed a petition at the Federal High Court in Abuja to halt the sale.

They argue that Shell is violating a December 2023 court ruling that suspended any asset sales until a pending compensation lawsuit is resolved.

The communities have an ongoing lawsuit against Shell, accusing the company of causing an oil spill that has damaged waterways and farms. Shell, on the other hand, has maintained that such spills are largely due to oil theft and tampering with pipelines.

The community representatives stated in their court filings that Shell should be penalised for proceeding with the asset sale “when the plaintiffs and the host of their community members have remained in perpetual suffering over the failure of the defendants to obey the preservative orders of a competent court.”

Shell has not yet commented on the matter. It remains unclear when the court will hear the case.

The oil giant has faced numerous lawsuits, both locally and internationally, from communities demanding environmental restoration or compensation for land affected by historical oil spills.

Meanwhile, Shell’s proposed asset sale has yet to receive approval from Nigeria’s energy regulator and the petroleum minister.