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PROPERTY NEWS
N15bn compensation: ‘Shell must show interest in environment’
By Samson Echenim
Published:Punch, 12th July 2010
Environmentalists on Friday, said it was important that the Shell Development and Production Company showed that it was interested on the environment, especially as regards its area of operations.
In an interview with our correspondent in Lagos, an environmental expert, Mr. Eberibe Jeofrey, said there was a need for SPDC to "borrow a leaf" from the British Petroleum, which had shown deep concern about the impact of the current oil spill on the Gulf of Mexico.
Also speaking with our correspondent, another environmentalist, Dr. Samson Ayoola, said the BP oil leak and the resolution of the company to pay $20bn for compensation had opened "our eyes in this part of the world."
The Federal High Court in Asaba, had on June 14 ordered SPDC to pay N15.4bn damages to Ejama Ebubu Community in Rivers State over oil spill in the area. But the oil company had since appealed, alleging in a statement issued in Lagos on July 6, that the spill in question occurred during the Nigerian civil war, when advancing troops set up the leak.
Jeofrey said, "The people of the Niger Delta had suffered a long period of environmental degredation. What people do not understand is that apart from the physical destruction of the environment, effects of oil can be enormous, even leading to causes of cancer.
"Until the BP oil spill issue came up, it is unfortunate to discover that many Nigerians did not realise the impact of this problem. We are happy that a judgement like this has been obtained, at least for now. It is important they (Shell) learns from BP."
Ayoola said, "For every Nigerian, especially the people of the Niger Delta, this is an eye opener. This problem is as old as the advent of oil exploration in the country, but no one had seen it as a big threat to the environment and resources that sustain the existence of man."
Mr. Isaac Agbara and nine other plaintiffs had on behalf of the Ejama Ebubu community, sued the SPDC in 2001 and joined Shell International Petroleum Company Limited and Shell International Exploration and Production BV as co-defendant to the suit. The judgement, however had taken 10 years to come.
Meanwhile, current United States government estimates of the spill range from between 35,000 to 60,000 barrels per day.
BP‘s bill so far has been more than $3.1bn, and it has agreed to set up a $20bn fund to deal with compensation claims and clean-up costs.
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