News
Court Sets To Award $1 Billion to Niger-Delta Communities Affected by 2011 Bonga Oil Spill
From left: Harrison Jala, Reverend Jackson Ajanemiwa and Dr. Orie George Yeke, during the press briefing held in Warri, Wednesday
By Francis Sadhere, Warri
The Federal High Court sitting in Warri is set awarded $1 billion in pollution indemnity claims to victims and communities in the Niger-Delta affected by the Bonga oil spill of 2011.
The judgment, which is expected to come any moment from now was as a result of a lawsuit filed by the Oil Spill Victims Vanguard (OSPIVV) against Shell Trading and Shipping Company Limited (STATSCO) and Britannia Steamship Insurance Association Limited.
According to Harrison Jalla, Executive Director of OSPIVV, in press briefing in Warri, Wednesday, the lawsuit which was initiated on April 22, 2022, revealed that the insurance claim, tied to Certificate Number 0492900 for the vessel MT Nothia, had been concealed and improperly diverted by STATSCO and its partners since the disaster.
Jalla said the vessel, loaded at the Shell Exploration and Production Company (SNEPCO) Bonga Floating Production Storage and Offloading (FPSO) facility, was insured for pollution incidents, yet the claim was never disclosed to Nigerian regulatory bodies, including the National Oil Spill Detection and Response Agency (NOSDRA) and the Nigerian Maritime Administration and Safety Agency (NIMASA).
He described the 2011 spill as one of the worst environmental disasters in the region’s history which caused severe pollution and lasting harm to local communities.
He lamented that Shell, instead of providing compensation, companies allegedly conspired to misappropriate the funds meant for the affected populations.
“This pollution indemnity insurance claim was concealed and diverted by Shell Trading and Shipping Company Limited (STATSCO) and Britannia Steamship Insurance Association Limited, both of the United Kingdom, since 2011. The insurance policy, Certificate Number 0492900, for the pollution indemnity of MT Nothia with IMO Number 9399480-the ship brought by Shell Trading and Shipping Company Limited (STATSCO) to load at the Shell Exploration and Production Company (SNEPCO) Bonga FPSO-was insured against pollution for $1 billion.
“The Niger-Delta communities suffered severe pollution, the worst in their history, due to gross negligence during the loading of MT Nothia by both STATSCO and 5NEPCo. Instead of compensating the victims, these companies conspired with Britannia Steamship Insurance Association Limited to divert and appropriate the $1 billion meant for the rightful beneficiaries of the 2011 Bonga oil spill.
“Both STATSCO and SNEPCO concealed the $1 billion insurance indemnity pollution claim from Nigerian regulatory authorities, including the National Oil Spill Detection and Response Agency (NOSDRA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), while also excluding the victims impacted by the spill,” Jalla said.
The Executive Director of OSPIVV, emphasized the importance of the ruling for the victims, stating that, “This judgment is a victory for justice and accountability in the Niger-Delta. The communities have suffered long enough, and it is time for those responsible to be held accountable.”
The expected ruling will mark a crucial step towards rectifying the injustices faced by the Niger-Delta communities and ensuring that compensation reaches the rightful beneficiaries. OSPIVV remains committed to advocating for transparency and accountability within Nigeria’s extractive industries.