Shell files an International Arbitration against Nigeria over a 50-year-old Oil Spillage Dispute.
Shell has initiated international arbitration, with the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) on Feb. 10, against Nigeria over a dispute regarding an oil spill that took place five decades ago in Nigeria.
The case relates to an oil spill in the Ejama-Ebubu community that took place during the 1967-70 Biafran war. When the case was held in Nigeria, Nigeria’s Supreme Court denied Shell’s request to appeal the award.
In November, The Supreme Court rejected shell’s bid to set aside a 2010 award of 17 billion naira ($45 million), with accruing interest, which the Ejama-Ebubu community says is now worth more than 180 billion naira.
Shell was not satisfied with the Supreme Court’s ruling. It insists it never got a chance to defend itself against the substance of the claims and they are seeking to protect their legal rights through this arbitration.
It is no news that Shell which is the most significant international oil company operating in Nigeria, has faced a string of court losses in the past several months over oil spills.
Just last week a group of fishermen and farmers won the right to sue the company in the United Kingdom over Nigerian oil spills. Also, last month, a Dutch court of appeal held Shell responsible for multiple oil pipeline leaks in the Niger Delta and ordered it to pay unspecified damages to farmers.
We guess Shell is tired of being the one on the receiving end of court cases and has decided to take the bull by the horn.
How do you think these string of court cases will affect the stocks of Shell?