Shell To Pay Millions For Oil Spill

Oil giant Shell has agreed to pay a 55 million pounds ($106 million) for the worst oil spill that destroyed thousands of hectares of mangroves and the fish and shellfish that sustained villagers of the Bodo community in Nigeria's southern Niger Delta

Today's agreement ends a three-year legal battle in Britain over two spills in 2008 that destroyed thousands of hectares (acres) of mangroves and the fish and shellfish that sustained villagers of the Bodo community in Nigeria's southern Niger Delta.

It "is thought to be one of the largest payouts to an entire community following environmental damage," said Martyn Day of the claimants' London lawyers, Leigh Day & Co.

"We hope that in future Shell will properly consider claims such as these from the outset and that this method of compensation, with each affected individual being compensated, will act as a template for Shell in future cases" in Nigeria and elsewhere. Shell Nigeria is 55 percent owned by the Nigerian government.

George Frynas, who has researched and published for 20 years about community conflict and litigation, said the agreement has "enormous importance" that "may open the floodgates for other communities around the world to sue companies."

Lawyers around the world will be watching closely and looking for ways to bring more cases to US and UK courts because the amounts involved are so huge, he said.

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