Royal Dutch Shell may have to pay $410 million in compensation after admitting fault for two oil spills in Nigeria via a claim filed in the UK.
It comes after a lawsuit was brought in the High Court by the Bodo Community in the Niger Delta against Shell and its subsidiaries. The compensation is to be paid to the 69,000 Nigerians who were affected by the damage caused by leaks in the pipelines.
Majority of the claims were made by fishermen who make about $5,000 to $8,000 on average.
The award is for loss of livelihood over the past three years and it could take up to two years for a full clean up.
The case stems from oil spills in 2008-09 that damaged the waterways in particular the fishing community of the Bodo people.
According to CNN, Shell says the spills aren't the result of operational failures but third party intereference such as theft and sabotage. In 2011, Shell claimed 13 spills in the Bodo area were a result of illegal activity.
The company recorded 32 operational spills in the Niger Delta, down from 37 in 2009.
Thursday, August 4, 2011
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