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Shell has hit back at Nigerian regulator claims that it should be fined US$5 billion for a 40,000-barrel oil spill last year

In December 2011 Shell ceased operations in the offshore Bongo field when 40,000 barrels worth of oil leaked into the Gulf of Guinea; government officials described it as one of the worst oil spills in Nigerian territory for a decade.

The oil giant said, however, that there was no “basis in law for such a fine”.

At a parliamentary committee on Monday the National Oil Spill Detection and Response Agency (NOSDRA) announced, "The spilled barrels impacted approximately 950 sq km of water surface and affected a great number of sensitive environmental resources.

"It has had a direct social impact on the livelihood of people in the riverine areas whose primary occupation is fishing."

Shell has argued, however, that the clear-up procedure meant the spilt oil was dispersed before it could reach Nigeria’s shoreline.

In a recent statement, Shell said, "Shell Nigeria Exploration and Production Co (SNEPCo) responded to this incident with professionalism and acted with the consent of the necessary authorities at all times to prevent environmental impact."

It added, "We do not believe there is any basis in law for such a fine. Neither do we believe that SNEPCo has committed any infraction of Nigerian law to warrant such a fine."