Court Prevents Shell From Selling Nigerian Assets Over $2bn Penalty
As its appeal hearing is set to begin on May 5, 2022, Nigerian court has stopped Shell Plc from selling any assets in Nigeria until a decision is reached on the company’s plea of a nearly $2 billion penalty for an alleged oil spill.
A copy of the court ruling was issued on March 11 and also ordered Shell to deposit the money in an account controlled by the court within two working days.
A panel of three judges said Shell, acting through its agents or subsidiaries was restrained from selling, allocating, vandalising or disposing off any of its assets/properties pending the determination of the appeal.
A Federal High Court in November 2020 ordered Shell to pay 800 billion naira ($1.95billon) to 88 communities of Egbalor Ebubu in Rivers state, who had accused the company of an oil spill that damaged their farms and waterways.
The company, which denied causing the spill, then appealed the verdict.
Shell started talks with the Federal Government in 2021 about selling its stake in Nigeria onshore fields, where it has been active since the 1930s, as part of a global drive to reduce its carbon emissions.
The company, the most significant international oil major operating in Nigeria, has faced a string of court cases in the past over oil spills.
It would be recalled that in 2021, Shell agreed to pay a Nigerian community $111.68 million to settle a case over an oil spill that took place more than 50 years ago.
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