Shell Accused of Diverting $1 Billion Insurance Claim from Niger Delta Oil Spill Victims

The Executive Director of the Oil Spill Victims Vanguard (OSPIVV), Harrison Jalla, has accused Shell Trading and Shipping Company Limited (STATSCO) and its partners of diverting a $1 billion insurance indemnity intended for victims of the 2011 Bonga Oil Spill in Nigeria's Niger Delta.

This accusation is part of a lawsuit filed in April 2022, which seeks to recover the funds for the affected communities.

The Bonga Oil Spill, described as one of the worst environmental disasters in the Niger Delta, occurred during the loading of crude oil by the vessel MT Nothia, owned by STATSCO and Shell Exploration and Production Company (SNEPCO). According to Jalla, "The negligence during the loading of MT Nothia resulted in catastrophic pollution, yet the rightful beneficiaries of the insurance claim have been denied justice for over a decade."

Jalla further alleged that the insurance policy, with Certificate Number 0492900, was insured for $1 billion but was diverted by STATSCO in collaboration with Britannia Steamship Insurance Association Limited. He claimed this diversion happened without informing Nigerian regulatory authorities or the impacted victims, leaving the affected communities out of the compensation process despite the severe environmental damage caused by the spill.

The lawsuit aims to hold international oil companies accountable for their actions in Nigeria’s oil-rich region. Jalla emphasized, "This suit is not just about compensation, but about holding these corporations accountable for their actions." The case also highlights broader issues of corporate responsibility, environmental justice, and regulatory oversight within the oil industry.