Mixed reaction to Shell's oil-spill settlement

Legalbrief reports that the out-of-court settlement follows a significant legal battle during which residents of the Bodo community in the Niger Delta had demanded restitution for loss of livelihood caused when a broken pipeline spilled tens of thousands of barrels of oil into the creeks and forests contaminating the environment. Lawyers for 15 600 Nigerian fishermen say their clients will receive $3 300 each for losses caused by the spills. BBC News reports that 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'. The oil giant said both spills were caused by operational failure of the pipelines. The Wall Street Journal reports that Shell has operated in Nigeria for decades, but in recent years it has struggled with pipeline leaks and other environmental and security problems, some tied to oil theft. The company has been trying to exit many of its onshore operations in the country. In November, it sold its stake in certain oil wells and processing plants to a Nigerian company for about $600m, according to the report. It says the Bodo lawsuit had been one of the long-term headaches facing the company in Nigeria. The report notes that Shell said it is now committed to cleaning up the area. It said it is bringing outside inspectors to the region to determine the extent of environmental damage and will be selecting contractors to start the clean-up in the coming months, the report states. Full BBC News report Full report in The Wall Street Journal

The Guardian reports that Niger Delta communities affected by oil spills have indicated that they will bypass Nigerian courts and try to sue Shell and other oil companies in London following the settlement. 'It makes sense to work with a UK law firm,' said Amasenibo Abere, a Bonny island community leader whose fishing grounds were devastated in late November 2014 when a Shell pipeline was damaged, spilling thousands of barrels of oil into creeks and swamps. Full report in The Guardian

While the payout is a long-awaited victory for the thousands of people who lost their livelihoods in Bodo, it shouldn't have taken six years to get anything close to fair compensation. Audrey Gaughran, director of global issues at Amnesty International (AI) said Shell knew that Bodo was an accident waiting to happen. 'It took no effective action to stop it, then it made false claims about the amount of oil that had been spilt. If Shell had not been forced to disclose this information as part of the UK legal action, the people of Bodo would have been completely swindled. The wait has taken its toll on Bodo residents, many of whom had their fishing and farming livelihoods destroyed in the spill. Throughout this time they have had to live with the ongoing pollution and, without compensation, many have faced grinding poverty. Full AI statement

And a report on the allAfrica.com site notes that the Health of Mother Earth Foundation (Homef) said the oil giant's agreement for settlement is an admittance of years of 'ecological crime' in the Niger Delta community. 'When compared to what polluting oil companies pay elsewhere for their ecological crimes, Homef sees the compensation as inadequate for the severity of damage done,' foundation spokesperson Nnimmo Bassey is quoted in the report as saying. However, states the report, he welcomed Shell's agreement to pay the penalty noting that it was a confirmation of their guilt. 'Although the amount being offered each fisherman is better than the pittance that Shell initially offered to pay, this can hardly purchase a good fishing boat and equipment necessary to return to the fishing business that the people know best - that is if they chose to move to other communities with cleaner waters in which to fish,' he added, according to the report. Full report on the allAfrica.com site