Dutch court says oil company can be liable for Nigeria spills

Dutch Appeals Court ruled on Friday that Royal Dutch Shell can be held liable for oil spills at its subsidiary in Nigeria.

Judges in The Hague ordered Shell to make available to the court documents that might shed light on the cause of the oil spills and whether leading managers were aware of them.

Friday's ruling overturned a finding by a lower Dutch court in 2013 that Shell's Dutch-based parent company could not be held liable for spills at its Nigerian subsidiary.

The legal dispute dates back to 2008 when four Nigerian farmers and campaign group “Friends of the Earth” filed suit against the oil company in Netherlands, where its global headquarters is based.

"Shell can be taken to court in the Netherlands for the effects of the oil spills," the court ruling stated on Friday.

"Shell is also ordered to provide access to documents that could shed more light on the cause of the leaks."

Judge Hans van der Klooster said the court had also found that it "has jurisdiction in the case against Shell and its subsidiary in Nigeria".

The case has been adjourned till March for hearing.

Shell's Nigerian subsidiary, Shell Petroleum Development Company of Nigeria Ltd (SPDC), said in a statement: "We are disappointed the Dutch court has determined it should assume international jurisdiction over SPDC."

Shell has always blamed sabotage for the leaks, which under Nigerian law would mean it is not liable to pay compensation.

But the Dutch court said on Friday: "It is too early to assume that the leaks were caused by sabotage."

In January 2013, the district court in The Hague ruled that one of the farmers in the original suit was eligible for compensation from Shell's Nigerian division for spills on his land.

The farmer appealed over whether the parent company should also be liable.

“Friends of the Earth” Netherlands Director Geert Ritsema said Friday's ruling meant the three other farmers could proceed with claims for compensation for lost income resulting from spills.

"There are 6,000 kilometres of Shell pipelines and thousands of people living along them in the Niger Delta," he said.

"Other people in Nigeria can bring cases and that could be tens of billions of euros in damages."

In a separate case, Shell agreed in January to pay out 55 million pounds ($82 million) in out-of-court compensation to a community for two oil spills in Nigeria in 2008.