ABUJA, Sept 13 (Askume) – A Nigerian community is seeking 505 billion naira ($310 million) in damages from Shell, alleging in court documents unearthed on Friday that Shell violated an existing court order by striking a deal to sell its Niger Delta onshore assets .

    Shell (SHEL.L) will exit Nigeria’s onshore oil and gas industry after agreeing in January to sell the business to a consortium of five mainly local companies for $2.4 billion.

    But more than 1,200 representatives of the Ilaje community in the Niger Delta asked the Federal High Court in Abuja to block the deal, arguing that Shell violated a December 2023 decision to pay compensation until the conclusion of the litigation.

    The community is suing Shell, saying the company caused the oil spill, which harmed waterways and farmland.

    Shell has long said such spills are primarily caused by oil theft and pipeline interference.

    In court documents, the community said Shell should be penalised for selling the property “when the plaintiffs and members of their community continue to suffer as a result of the defendants’ failure to comply with a supervision order of a competent court.”

    Shell had no immediate comment.

    It is not clear when the court will hear the case.

    The oil giant is facing a flood of lawsuits from local and foreign communities seeking environmental restoration or compensation for lands damaged by historic oil spills.

    Shell’s asset sale has not yet received approval from the energy regulator and the oil minister.

    (1 USD = 1,630.00000 Naira)

    Categorized in:

    business, energy,

    Last Update: September 13, 2024