Oil-rich communities in the Niger Delta are seeking 505 billion naira (equivalent to $310 million) in damages from Shell, claiming the oil giant breached a court order by proceeding with the sale of its onshore assets in the Niger Delta.
The legal challenge, filed on Friday, accuses Shell of violating a court ruling from December 2023, which had prohibited any asset sales until a compensation lawsuit was settled.
In January, Shell, which has committed to exiting Nigeria’s onshore oil and gas sector, announced plans to sell its onshore business for $2.4 billion to a consortium of five mostly local companies. PulseNets reported that this move aligns with Shell’s broader strategy to withdraw from onshore operations in Nigeria.
However, more than 1,200 representatives from the Ilaje communities in the Niger Delta petitioned the Federal High Court in Abuja, demanding the immediate halt of the transaction. PulseNets learned that the community leaders argued that Shell’s actions violated the court’s ruling, which had suspended the sale pending the resolution of the compensation case.
The communities have sued Shell over what they allege to be environmental damage caused by oil spills, which they claim have devastated both waterways and farmlands. PulseNets was told by Shell that the company insists the spills are primarily caused by theft and vandalism, not by operational failures.
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Despite this defense, the communities contend that Shell’s decision to move forward with the sale directly defies the court’s order, viewing it as an attempt to avoid accountability. Speaking to PulseNets, community representatives stated that Shell should face penalties for ignoring the court’s preservative orders, stressing that their ongoing suffering is a direct result of the company’s refusal to comply with judicial directives.
