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The House of Representatives Committee on Environment has directed Shell Nigeria Exploration Company to pay the sum of 3.6 billion dollars, which is about 604 billion naira as damages for the Bonga oil spill caused by its equipment failure.
The Chairman of the Committee, Uche Ekwunife, gave the directive during an investigative public hearing on the Bonga crude oil spill, which occurred on the December 20, 2011.
The breakdown of the independent value analysis adopted by the committee indicated that Shell is to pay 63.6 billion naira for direct losses, which are irreversible damages, another 103.192 billion naira for loss of income, 85 billion naira for provision of water, while 27.4billion naira is for forestry.
For the indirect losses, the oil company is to pay 14.35 billion naira for health hazards; eight million naira for injurious affection and 302.4 billion naira for punitive damage.
Shell is one of Nigeria’s oldest energy companies.
Shell companies in Nigeria produce oil and gas from land and swamps in the Niger Delta and from deep-water reserves some 120 kilometres off the coast.
Shell also operate Nigeria’s largest liquefied natural gas (LNG) plant, which exports all over the world.
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