Shell Oil

Shell and Partners Accused of Diverting $1 Billion Insurance Claim for Bonga Oil Spill Victims

The Oil Spill Victims Vanguard (OSPIVV) has raised serious allegations against Shell Trading and Shipping Company Limited (STATSCO) and its partners for allegedly diverting a $1 billion insurance indemnity meant for communities affected by the 2011 Bonga Oil Spill in Nigeria’s Niger Delta.

Harrison Jalla, Executive Director of OSPIVV, filed a lawsuit, marked FHC/WR/CS/19/2022, accusing the companies of withholding compensation owed to victims of the environmental disaster. Jalla’s statement, issued on Wednesday, highlighted that the pollution indemnity was part of an insurance policy tied to the MT Nothia vessel, which was involved in loading crude oil during the spill.

The Bonga Oil Spill, regarded as one of the most severe ecological disasters in the region, caused widespread environmental damage. Despite this, Jalla claims that STATSCO, in collaboration with Britannia Steamship Insurance Association Limited, diverted the funds intended to compensate the impacted communities, excluding them from the compensation process.

The lawsuit, filed in 2022, seeks to recover the diverted insurance claim and hold the companies accountable for their actions. Jalla stressed that beyond compensation, the case aims to bring justice to the communities, citing the lasting effects the spill had on their livelihoods and environment. He also accused the companies of concealing the insurance claim from regulatory bodies like the National Oil Spill Detection and Response Agency (NOSDRA) and the Nigerian Maritime Administration and Safety Agency (NIMASA).

The legal case, which could set a significant precedent, underscores the continued fight for justice by communities affected by oil spills in the Niger Delta.

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