Nigerian communities in the Niger Delta are demanding 505 billion naira ($310 million) in damages from Shell, accusing the oil giant of violating a court order by proceeding with the sale of its onshore assets, media reported, citing a court document.
The communities have taken their grievances to the Federal High Court in Abuja, where they have requested that Shell’s $2.4 billion sale of its Nigerian oil and gas business be halted.
In January, Shell agreed to sell its onshore operations to a consortium of five companies, most of which are local. However, representatives of over 1,200 Ilaje communities argue that the sale breaches a December 2023 court ruling, which suspended any asset transactions until a lawsuit seeking compensation for environmental damage caused by an oil spill is resolved.
The communities accuse Shell of causing the spill, which they claim devastated waterways and farmlands. They argue that Shell should be penalized for attempting to finalize the deal “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, on the other hand, has maintained that the majority of oil spills in the region result from theft and interference with pipelines. The company has faced numerous legal challenges, both in Nigeria and abroad, over environmental damage and demands for compensation from affected communities.