Oil spills: Supreme Court Grants Shell’s Request to Appeal Suit Stopping Sale of Assets

The supreme court has granted the request by Shell Petroleum Development Company (SPDC) to appeal a ruling that directed the company to pay N800 billion ($1.8 billion) compensation over an alleged spill in Rivers state.

SPDC is the Nigerian subsidiary of global oil giant Shell Plc. 

The dispute has held back the company’s sale of its onshore assets.

The supreme court ruled, on Friday, that it had jurisdiction over the matter and would hear the substantive case. 

The court did not immediately set a date for the hearing.

“We believe in the merits of our case and are encouraged that the Nigerian Supreme Court is hearing this matter. We look forward to the hearing of our main appeal,” an SPDC spokesperson said.

In November 2020, a federal high court ordered Shell to pay N800 billion to 88 communities in Egbalor Ebubu, Rivers state, over an oil spill that damaged their farms and waterways.

Shell, which denied causing the spill, had appealed the verdict.

Last year, Shell started discussions with the federal government to sell its onshore oil assets in Nigeria — about five local oil firms had indicated interest.

In March 2022, a court of appeal in Owerri stopped the oil firm from selling any assets in Nigeria pending the determination of the company’s appeal suit. It also ordered Shell to deposit the money in an account controlled by the court.

Later in June, the supreme court also upheld the lower court’s order on Shell’s asset sale, ruling that both parties should maintain status quo until the appeal is determined.