March 15, (THEWILL) – The Appeal court in Owerri, has ordered Shell to deposit about $2 billion in an account controlled by the court, within two working days.
The court also stopped Shell Plc from selling any assets in Nigeria, until a decision is reached on its appeal of the nearly $2 billion penalty for an alleged oil spill.
A panel of three judges, in the ruling on 11th March, 2022, said Shell, acting through its agents or subsidiaries, was restrained from “selling, allocating, vandalising or disposing off any of its assets/properties …” pending the determination of the appeal.
However, spokesperson for Shell’s Nigeria unit told Reuters the company would immediately appeal the decision.
“We are disappointed at this outcome. We have a strong belief in the merit of our case and will take immediate steps under the law to appeal and stay the execution of the decision, until the appeal is determined”, the spokesperson said.
THEWILL gathered that Shell’s appeal hearing is set to begin on May 5.
A Federal High Court in November 2020, had ordered Shell to pay N800 billion ($1.95 billon) to 88 communities of Egbalor Ebubu in Rivers state, who had accused the company of an oil spill that damaged their farms and waterways.
Shell, which denied causing the spill, then appealed the verdict.
Shell started talks with the Nigerian government last year about selling its stake in Nigeria’s onshore fields, where it has been active since the 1930s, as part of a global drive to reduce its carbon emissions.
Shell has faced a string of court cases in the past over oil spills. In 2021, it agreed to pay the Ejama-Ebubu community in Ogoniland, Rivers State, $111.68 million to settle a case over an oil spill that took place more than 50 years ago.
