Nigeria’s Supreme Court on Friday granted the appeal of SPDC Nig by ruling that Shell is entitled to a hearing regarding an alleged oil spill in the Niger Delta where a lower court had asked the company to pay $878 million.
This follows the Court of Appeal’s ruling suspending an asset sale and its directive to settle a judgment claim before addressing the case.
The Supreme Court, in its ruling on Friday, stated that the appellate court did not thoroughly examine the merits of the case and ordered that Shell be given an opportunity for a hearing.
The details of the verdict, read orally on Friday, will be officially documented within seven days, according to undisclosed sources awaiting the publication of the ruling.
This legal matter, one among various cases against Shell Plc both domestically and internationally, originated from a November 2020 High Court ruling.
The ruling mandated Shell to pay $878 million to the communities of Egbalor Ebubu in Rivers state. These communities accused Shell Nigeria of causing an oil spill that resulted in damage to waterways and farms.
The community’s lawyer, Mohammed Ndarani, told Reuters that the Supreme Court has returned the case to the Court of Appeal.
A spokesperson for SPDC Nig told Bloomberg “We note the Supreme Court’s judgment on SPDC’s appeal, and we are currently assessing its implications.”
In 2022, Shell Petroleum Development Co. of Nigeria Ltd. received a court order restraining it from divesting its assets until the case’s resolution.
Consequently, its parent company decided to temporarily halt the sale of its onshore oil operations.
Similar to other major oil companies working in the country, Shell is directing its attention toward deep-water drilling while divesting from onshore operations.
Onshore operations are susceptible to crude theft and pipeline vandalism, negatively impacting Nigeria’s oil production.
