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Nigeria threatens Shell with environmental fine

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Section: International News Geography: Africa Nigeria Topics: oil, corporate

September 30, 2004

Nigeria threatens Shell with environmental fine

Nigeria's senate has overwhelmingly passed a resolution demanding US$1.5 billion in compensation from Shell Petroleum Development Corporation for environmental damage caused by oilfield development in the country. The resolution was raised from a petition submitted by the Ijaw of the southern state of Bayelsa, where many multinational companies are engaged in oil development. The resolution calls for Shell to pay US$1 billion immediately and US$100 million a year for the next five years. Representatives from the company claim they did not know about it.

Critics note that all of Shell's oil development in Nigeria is operated through a company that is 55% owned by the Nigerian government, while others suggest that Nigeria's near-nonexistent environmental laws are to blame for the damage.

» BBC: Shell 'faces $1.5bn Nigeria bill'

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The Dominion is a monthly paper published by an incipient network of independent journalists in Canada. It aims to provide accurate, critical coverage that is accountable to its readers and the subjects it tackles. Taking its name from Canada's official status as both a colony and a colonial force, the Dominion examines politics, culture and daily life with a view to understanding the exercise of power.

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