In a case that has delayed the corporation’s sale of its onshore assets, Nigeria’s Supreme Court on Friday permitted Shell Plc’s local business to appeal a decision ordering the company to pay $1.8 billion in damages for an alleged leak.
Until the court issued a decision regarding an appeal filed by its subsidiary Shell Petroleum Development Company of Nigeria Ltd (SPDC) and partner NNPC Ltd against a lower court order, Shell indicated in June that it would halt the sale of local assets.
The Supreme Court decided on Friday that it had jurisdiction over the situation and would hear the main case. A date for the hearing was not immediately determined by the court.
“We believe in the merits of our case and are encouraged that the Nigerian Supreme Court is hearing this matter. We look forward to the hearing of our main appeal,” an SPDC spokesperson said.
The lawsuit began with a Federal High Court decision in November 2020 ordering Shell to pay 800 billion naira ($1.8 billion) to communities in Rivers State’s Egbalor Ebubu who accused the company of an oil leak that destroyed farmland and waterways.
The Appeal Court affirmed the verdict in March and required Shell to deposit the funds in a court-mandated account.
The spill’s origin is denied by Shell.
