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Shell agrees Nigeria oil spill deal

The local fishing community in Nigerias delta region have been hardest hit by recent oil spills

Oil giant Royal Dutch Shell has agreed to a $84m (£55m) settlement with residents of the Bodo community in the Niger Delta for two oil spills

Fishermen and farmers livelihoods were destroyed by pollution

What they feel particularly pleased about is that the individual money is going to them personally”

The settlement was announced by the Anglo-Dutch oil giants Nigerian subsidiary SPDC

From the outset weve accepted responsibility for the two deeply regrettable operational spills in Bodo its managing director Mutiu Sunmonu said Shell says that both spills were caused by operational failure of the pipelines

However the company maintains that the extent of environmental pollution in the area is caused by the scourge of oil theft and illegal refining”.

It also suggested that earlier settlement efforts had been hampered by divisions within the community”.

This particular David v Goliath battle may be over but other suits against the international oil companies will follow

The law firm that fought on behalf of the Bodo community Leigh Day says it made sure everyone had a bank account set up so the $3300 should hit their accounts soon

It may be far harder to follow the trail of the roughly $30 million compensation being paid to the community itself

It is telling just where this money is due to be spent

Chief Mene Sylvester Kogbara from Bodo says he hopes the money will be used to develop the community especially education agriculture and health We dont have a water supply he told me

These are surely things that should have been taken care of by successive governments that have for decades squandered Nigerias oil money

It is a stark reminder of just how badly the people of the Niger Delta and the rest of this oil-rich country have been let down

The law firm representing the Nigerian fishermen and their community Leigh Day described it as one of the largest payouts to an entire community after devastating environmental damage

It is the first time that compensation has been paid following an oil spill in Nigeria to the thousands of individuals who have suffered loss the firm said in a press release confirming the development

The deal which ends a three-year legal battle is the first of its kind in Nigeria it added

The law firm said the initial compensation offered to the entire community was as low as $6000

Leigh Day also said that Shell had pledged to clean up the Bodo Creek over the next few months

Lawyer Martyn Day who represents the claimants said it was deeply disappointing that Shell took six years to take this case seriously and to recognise the true extent of the damage these spills caused to the environment and to those who rely on it for their livelihood”.

But he told the BBC that his clients were absolutely delighted with the deal that was struck

What they feel particularly pleased about is that the individual money is going to them personally In Nigeria mostly what happens is that chiefs bring claims on behalf of the community the chiefs then get the compensation and the individuals seem hardly ever to see much of it

So I think theyre very pleased that weve been able to set up for them individual bank accounts

An Amnesty International report into the effects of the oil spills in Bodo a town in the Ogoniland region said that the spills had caused headaches and eyesight problems

The price of fish a local staple food rose as much as tenfold and many fishermen had to find alternative ways to make a living the report added A separate UN study said local drinking water sources were also contaminated

The two spills came from the same pipe on the Trans Niger Pipeline operated by Shell which takes oil from its fields to the export terminal at Bonny on the coast It carries about 180000 barrels of oil per day