Shell faces a bill of hundreds of millions of dollars after accepting full liability for two massive oil spills that devastated a Nigerian community of 69,000 people and may take at least 20 years to clean up.
Right, OK, big spills, environmental damage, should be put right.
Proceedings against Royal Dutch Shell and Shell petroleum development company (SPDC) Nigeria began in the high court on 6 April 2011. Last week Shell Nigeria said: \”SPDC accepts responsibility under the Oil Pipelines Act for the two oil spills both of which were due to equipment failure. SPDC acknowledges that it is liable to pay compensation – to those who are entitled to receive such compensation.\”
SPDC, is that this SPDC?
SPDC\’s role in the Shell Nigeria family is typically confined to the physical production and extraction of petroleum. It is an operator of the joint venture, which composed of Nigerian National Petroleum Corporation (55%), Shell (30%), Total S.A. (10%) and Eni (5%). Until relatively recently. it operated largely onshore on dry land or in the mangrove swamp.
The JV that\’s 55% owned by the Nigerian Government?
If it is, how many commenting on this case are likely to note that government involvement?