Shell faces N799 billion fine over Bonga spill

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NOSDRA told the Senate that the company caused last year’s Bonga oil spill

Oil giant, Shell, is facing a $5 billion (N799.25 billion) fine for environmental damages after the National Oil Spill Detection and Response Agency (NOSDRA) told the a Senate committee that the Bonga Oil spill of December 2011 was caused by a a failure in Shell’s oil export hose.

NOSDRA noted that although last year’s spill, estimated at around 40,000 barrels, was contained offshore, there was a serious environmental threat.

“The spilled barrels impacted approximately 950 square kilometres of water surface, affected a great number of sensitive environmental resources,” the NOSDRA presentation to the environment committee of the national assembly said on Monday. “It has a direct social impact on the livelihood of people in the riverine areas whose primary occupation is fishing.”

Shell on Tuesday, however, frowned at the move to get if fined the whooping amount claiming there was no legal basis for the proposed fine.

In a statement, Shell claimed that Shell Nigeria Exploration and Production Co (SNEPCo) responded to the spill, which happened while a tanker was loading oil, leading to the complete shut-down of the company’s 200,000 barrel per day (bpd), with professionalism and in line with the Nigerian laws.

“We do not believe there is any basis in law for such a fine. Neither do we believe that SNEPCo (Shell Nigeria Exploration and Production Co) has committed any infraction of Nigerian law to warrant such a fine,” Shell said. “SNEPCo responded to this incident with professionalism and acted with the consent of the necessary authorities at all times to prevent environmental impact as a result of the incident.”

Meanwhile, the Council of Ogoni Professionals (COP International, USA) has commended the move by the national assembly to fine the oil giant for the Bonga Oil spill.

Speaking through a statement made available to Daily Times, COP International said: ? The Council of Ogoni Professionals (COP International, USA) is elated that after years of subservience and servitude to Shell and other multi-national oil companies, the Federal Government of Nigeria has finally awaken from her slumber and decided to bring Shell to justice by slamming a $5bn fine on the company for the Bonga Oil Spill of December 2011.

?COP International, USA calls on the Nigerian Government to not only ensure Shell pays the $5bn fine but to also ensure that the money is spent judiciously on development projects that will benefit the impoverished communities of Southern Nigeria affected by the said oil spill.

?Moreover, we appeal to the Nigerian Government to go a step further and prevail on Shell to pay compensation to the locals affected by the oil spill. The claim by Shell that the Bonga spill was caused by sabotage is hogwash and should be disregarded immediately.

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