Shell Hit with $310 Million Lawsuit by Community Over Planned Asset Sale

Nigerian communities are seeking 505 billion naira ($310 million) in damages from Shell, accusing the company of breaching a court order by proceeding with the sale of its onshore assets in the Niger Delta, according to court documents revealed on Friday.

Shell announced its exit from Nigeria’s onshore oil and gas sector in January, agreeing to sell its operations to a consortium of five mainly local firms for $2.4 billion.

However, over 1,200 representatives from the Ilaje communities in the Niger Delta have petitioned the Federal High Court in Abuja to halt the sale, claiming that Shell is violating a December 2023 ruling which suspended any asset sales until an ongoing compensation lawsuit is resolved.

The communities have an active lawsuit against Shell, accusing the company of causing oil spills that have contaminated waterways and farmlands.

Shell has consistently argued that such spills are largely the result of oil theft and pipeline interference.

In the court filings, the communities assert that Shell should be sanctioned for proceeding with the asset sale “while the plaintiffs and their community members continue to suffer due to the defendants’ failure to comply with court orders.”

Shell has not yet commented on the matter, and it remains unclear when the court will hear the case.

The oil giant has faced multiple lawsuits, both locally and internationally, from communities seeking environmental restoration and compensation for land affected by past oil spills.

Approval for Shell’s asset sale is still pending from the energy regulator and the petroleum minister.

($1 = 1,630 naira)

(Reporting by Camillus Eboh; Editing by Mark Potter)