Shell to Pay $83 Million Settlement for Nigerian Oil Spills | WPN World People News

Oil giant Royal Dutch Shell has agreed to pay more than $83 million in a settlement with thousands of people in fishing community in southern Nigeria for two oil spills.

Shell agreed Wednesday to pay about $3,200 to each of more than 15,000 people along with another $30 million to the community of Bodo in the oil-rich Niger delta region.

The settlement is for what the company described as two "highly regrettable" oil spills in the area in 2008. It said it is also "fully committed" to carrying out cleanup operations.

The plaintiffs originally sought $400 million from Shell during the three-year legal battle, while the company first offered to settle with the community for $6,000. The $3,200 payments they agreed to amount to about three years of earnings for someone making Nigeria's minimum wage.

Amnesty International has estimated the spills involved more than 100,000 barrels of oil. Shell initially put the scale at 4,000 barrels, but later said the figure was higher without specifying the exact amount.

Shell has long faced criticism for its operations in Nigeria, where residents have accused the company of failing to maintain its pipelines and equipment, leading to spills that damage the environment and their livelihoods.

Mutiu Sunmonu, the managing director of Shell's Nigerian subsidiary, said Wednesday that oil theft and illegal refining are to blame for environmental pollution and that areas will continue to be impacted as long as those activities continue.

Source: Voice of America