George S. May Business Blog

Shell agrees to settle for $15.5m for 1995 killings

Royal Dutch Shell has finally reached a $15.5 million settlement, out of court, in its 13 year old Nigerian human rights abuse case. The case was brought forth by relatives of the nine protestors who were hung by Nigeria’s military rulers in 1995.

The case recently resurfaced in the news as it had finally been set to start trial in the United States next week.

For those unfamiliar with the case, in short, it alleged that Shell was complicit in the torture and eventual murder of the anti-oil campaigners. The Niger Delta is very oil rich, but the locals, especially members of the Ogoni ethnic group had been protesting drilling as the pollution being caused was immense.

Nine members of the Ogoni group were eventually executed after being convicted by a military tribunal over the 1994 murder of four local leaders.

The activists’ deaths sparked a storm of international protest.

Paul Hoffman, a lawyer for the Nigerian families, also expressed his satisfaction.

“We litigated with Shell for 13 years and, at the end of the day, the plaintiffs are going to be compensated for the human-rights violations they suffered,” he said.

“Had we tried the case and won, the plaintiffs were still looking at years of appeals,” he said.

Mr. Hoffman said $5m would go into a trust to benefit the people of Ogoniland. The rest would go to the plaintiffs and to pay the costs of litigation.

Shell has not accepted any liability over the allegations against it.

Speaking after the settlement was announced, Shell official Malcolm Brinded said it “acknowledges that, even though Shell had no part in the violence that took place, the plaintiffs and others have suffered.”

The lawsuit alleged that Shell officials helped to supply Nigerian police with weapons during the 1990s.

It claimed that Shell participated in security sweeps in parts of Ogoniland and hired government troops that shot at villagers who protested against a pipeline.

It was also alleged that Shell helped the government capture and hang Ken Saro-Wiwa and several of his colleagues.

“Shell has always maintained the allegations were false,” said Mr Brinded.

“While we were prepared to go to court to clear our name, we believe the right way forward is to focus on the future for Ogoni people, which is important for peace and stability in the region.”

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