SPDC agrees to £55 million settlement with Bodo community

Shell’s Nigerian subsidiary Shell Petroleum Development Co. of Nigeria Ltd. (SPDC), reported signing a £55-million settlement agreement with the Bodo community in respect of the two operational spills in 2008.

Shell’s Nigerian subsidiary Shell Petroleum Development Co. of Nigeria Ltd. (SPDC), reported signing a £55-million settlement agreement with the Bodo community in respect of the two operational spills in 2008.

“The settlement provides for an individual payment to each claimant who accepts the settlement agreement in compensation for losses arising from the spills, amounting to a total of as much as £35 million,” SPDC said, adding that the remaining £20 million payment will be made for the benefit of the Bodo community generally.

“From the outset, we’ve accepted responsibility for the two deeply regrettable operational spills in Bodo,” said Mutiu Sunmonu, SPDC managing director. “We’ve always wanted to compensate the community fairly and we are pleased to have reached agreement.”

In late 2008, two oil spills took place on the Bomu-Bonny Pipeline in Bodo. Both spills were caused by operational failure of the pipelines. As soon as the independent joint investigation team determined the cause, SPDC said it accepted responsibility for the spills.

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