The House of Representatives on Wednesday directed Shell Nigeria Exploration and Production Company Ltd (SNEPCo) to pay $3.6 billion or N604.832 billion for oil spill damages, it said, caused by Shell equipment failure in Bayelsa State.
Breakdown of the independent value analysis adopted by the House of Representatives’ committee showed that N63.6 billion is to be paid for direct losses (irreversible damages); N103.192 billion for loss of income; N85.785 billion is for water provision while N27,399,520,512 is for forestry and NTFP.
For the indirect losses, SNEPCo is to pay N14.350 billion for health hazard; N8.089 million is for injurious affection while the sum of N302.416 billion is for punitive damage.
Uche Ekwunife, chairman, House committee on environment, gave the directive during an investigative public hearing on the SNEPCo Bonga crude oil spill which occurred on December 20, 2011.
READ ALSO: Shell plans gas plant for Aba business area
According to the report, the Shell crude oil spillage and harmful chemical pollutants affected 350 coastal communities and satellite villages.
SNEPCo in its report agreed “to oil spill estimate at 40,000 barrels into the marine environment in Bonga on December 2011. The cause of the spill was equipment failure resulting from a snapped loading hose under water.”
In his presentation, Peter Idabor, director general, National Oil Spill Detection Response Agency (NOSDRA), who expressed disgust over the highhandedness of SNEPCo management, accused the company of frustrating moves to hold the multi-stakeholders’ meeting as directed by the committee.
He noted that at the meeting initiated by SNEPCo, the agency disagreed with the insincerity of SNEPCo on the unilateral adoption of different nomenclature, ‘mystery oil spill’ and ‘meeting of SNEPCo palliative’, at different forums.
To this end, he disclosed that various stakeholders resolved to withdraw from the meeting, adding that the minister of environment when briefed on the outcome of the multi-stakeholders’ meeting, directed other parties not to attend any meeting henceforth.
On his part, Agada Jerome, DPR manager, environmental matters, accused SNEPCo of frustrating efforts to find lasting solutions to the problem.
He alleged that SNEPCo at a meeting held at Eko Hotel presented false report that DPR certified the dispersant used in the affected communities, adding that the palliative provided so far by SNEPCo was done unilaterally.
