A June 21, (THEWILL)- Federal High Court in Abuja on Monday ordered two oil firms, the Nigerian National Petroleum Corporation and Mobil Producing Nigeria Unlimited, to pay N82 billion in damages for gas flaring and oil spillages in Ibeno Community, Ibeno Local Government Area, Akwa Ibom State.
The case was instituted by Obong Effiong Archianga and nine others, representing Ibeno Community against the Nigerian National Petroleum Corporation (NNPC), Mobil Producing Nigeria Unlimited, and ExxonMobil Corporation as first to third defendants respectively.
Delivering judgement on Monday, Justice Taiwo Taiwo, held that the claim of the plaintiffs succeeds as there was no evidence before the court that Mobil Producing Nigeria Unlimited curtailed flaring of gas, nor carried out any clean-up activity in the community, nor paid compensation for oil spillages from its pipelines.
The court therefore awarded N82 billion against the NNPC and Mobil Producing Nigeria Unlimited. It ordered that the sum be paid within 14 days or it will attract a post-judgement interest of 8% per annum.
According to Justice Taiwo, the action of Mobil is a clear violation of Section 11 of the Oil Pipeline Act that makes it mandatory for the oil companies to monitor and fix defective pipelines.
It held that the oral and documentary evidence produced by Mobil Producing Nigeria Unlimited, was not helpful in their case, describing them as serving pre-determined assets.
It also made an order of mandamus against the NNPC to discharge its duties by ensuring that its venture operators clean up, detoxify, and rehabilitate the land ecosystem, underground water, and air quality of Ibeno Clan.
Justice Taiwo had earlier struck out ExxonMobil from the list of defendants, on account of being an American registered company, leaving the NNPC and Mobil producing Nigeria Unlimited.
It however ruled on Monday that ExxonMobil can sue and be sued in Nigeria notwithstanding that it was a foreign company.
