Nigerian communities are demanding N505 billion ($310 million) in damages from Shell, alleging “breach of an existing court order” by agreeing to sell its onshore Niger Delta assets.
According to a Reuters report, more than 1,200 representatives of Ilaje communities in Ondo state asked the federal high court in Abuja to stop the deal.
On January 16, the British oil major announced plans to sell its Nigerian onshore assets to Renaissance — a consortium of local companies — for about $1.3 billion.
However, the communities, according to the report, argued that Shell was violating a December 2023 ruling that suspended any assets sale until a compensation lawsuit was concluded.
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The community said it has a pending lawsuit against Shell — where it accused the company of causing an oil spill that damaged waterways and farms.
In the court papers, the community said Shell should be penalised for going ahead 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.”
The oil major deal has faced opposition from organisations demanding environmental remediation or compensation for land damaged by oil spills.
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On July 5, Amnesty International, said the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) must avoid conflict of interest in the proposed sale of Shell’s onshore assets.
The deal is yet to be completed due to regulatory setbacks
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