Niger Delta communities sue Shell for $310m over asset sale breach

Niger Delta communities in the Niger Delta are seeking 505 billion naira ($310 million) in damages from oil giant Shell, accusing the company of breaching a court order by proceeding with the sale of its onshore assets. The communities claim that Shell violated a court ruling that suspended any asset sale until a compensation lawsuit over environmental damage was resolved.

Shell had agreed in January to sell its onshore oil and gas business to a consortium of five mostly local companies for $2.4bn, as part of its planned exit from Nigeria’s onshore oil sector. However, more than 1,200 representatives from the Ilaje communities have asked the Federal High Court in Abuja to halt the deal, arguing that Shell’s actions defy a December 2023 court ruling.

The community’s lawsuit against Shell stems from accusations that the oil major caused an oil spill that damaged local waterways and farmland. They assert that Shell’s asset sale continues despite the community suffering from the impact of the spill and the company’s failure to comply with court orders. In the legal documents, the community states that Shell should be penalised for going ahead with the sale ‘while plaintiffs and their community members have remained in perpetual suffering.’

Shell has not yet commented on the case, and it remains unclear when the court will hear the matter. The sale of Shell’s assets is also pending approval from Nigeria’s energy regulator and the petroleum minister.

This lawsuit is part of a broader series of legal challenges Shell has faced in Nigeria and internationally, as communities demand environmental restoration and compensation for damages caused by historical oil spills.

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