The Big 3: oil co’s and legal cases this month

Three of the world’s biggest private oil companies face landmark legal actions this February. Here is a brief run down of the main cases, what they are about and why they matter.

1. US v BP

At the centre of the legal fallout from BP’s Deepwater Horizon disaster in April 2010 is a  complex civil trial which begins on 27 February. The trial will determine who is to blame, how much should be paid in damages and penalties and who should pay them. BP is one of a number of defendants, alongside Transocean (owner and operator of the rig) and Halliburton. There are over 120,000 claimants involved, from Gulf Coast fishers to the US government, and a massive 72 million pages of documents. The trial, heard before a Judge Carl Barbier without a jury, is expected to last all year. Continue reading

Video: Chevron rig blazes off the coast of Nigeria

This disturbing video from Al Jazeera shows what’s left of Chevron’s KS Endeavour gas rig, which exploded on 16 January 2012. Over 20 days later the site is still ablaze and the intense flames and plumes of smoke can be seen from the nearby fishing village. Local community activists released this footage:  

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Legal Oil, Ethical Oil and Profiteering in the Niger Delta and the Canadian North

In this guest blog post, Professor Anna Zalik of York University Canada explores how governments and multinationals criminalise protest and gloss over the environmental injustices of oil extraction.

Q: What does the Canadian Government’s fury at opponents of the Enbridge Northern Gateway Pipeline have to do with the Nigerian ‘legaloil’ campaign?

A: Both positions are about justifying private profits and criminalizing protest. Continue reading

In pictures: Chevron rig still burning in Nigeria

On 16 January, between 4.30am and 5am, Chevron’s KS Endeavour drilling rig exploded six miles off the coast of Nigeria after the company lost control of the gas well. Two workers were reported killed. Ten days on, the fire continues to burn.

Photos courtesy of Morris Alagoa at ERA/FoE Nigeria. Continue reading

Shell’s Bonga oil spill hits Nigerian communities

Click on the image to view the full video from NTD

Shell’s major oil spill at the offshore Bonga facility in Nigeria is threatening the livelihoods of at least 13 different coastal communities, reports Reuters. As thick crude oil continues washing up on Nigeria’s shoreline, Shell is denying responsibility and claims that “non-Bonga oil” from a third party spill is to blame. A local resident from Bisangbene told the Vanguard newspaper that Shell’s Bonga spill had ruined livelihoods in the fishing village. Mr. Goodnews Gereghewei said:

our occupation is predominantly fishing and our fishermen have withdrawn from the sea because of the massive oil spill due to fear of being roasted alive since they fish mostly at night with local lamps.

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Shell spill worst in a decade, says Nigerian regulator

Nigeria’s oil spill agency, NOSDRA, says that Shell’s Bonga oil spill “is likely the worst [offshore spill] in a decade.”

Peter Idabor of the National Oil Spill Detection and Response Agency told The Associated Press on Thursday that oil from the spill in Shell’s Bonga field has spread to roughly 100 nautical miles. Idabor said he expects oil to begin washing ashore on Nigeria’s southern coast later Thursday.

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Own Up, Clean Up, Pay Up: Amnesty’s new report on Shell

Amnesty International today demanded that Shell immediately pay $1 billion towards an initial clean up fund for the Ogoni region of the Niger Delta, a scheme recommended by the UN this August.

A new report today published by Amnesty International and the Centre for Environment, Human Rights and Development (CEHRD) has called on Shell to accept responsibility for the pollution caused by oil spills in the Niger Delta, and to begin by paying US$1 billion as an initial down-payment towards the clean-up.

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A quick plug for our new (and beautiful) printed reports

Counting the Cost, Platform’s new report on Shell Nigeria, is now available in print! Please buy your copy here. The report looks and feels incredible, thanks to our amazing designers at Ultimate Holding Company.

Buying a copy of the report enables Platform to do more campaigning for human rights and corporate accountability in Nigeria. Your support is already having a real impact:

  • In the last 10 days, over 13,900 of you signed a petition demanding that Shell is held accountable for its human rights abuses in Nigeria.
  • Following the public outrage and media generated by the report, on Wednesday 5 October, the House of Representatives, part of Nigeria’s legislative body ordered an official investigation into the allegations that Shell fuelled violence in the Niger Delta by paying armed militant gangs.

The campaign is long and hard, but your ongoing support is vital. Please take a moment to support the campaign by getting yourself a copy (or two!) of the new report. Thank you in advance, and extra thanks go to our friends at New Internationalist for hosting the report in their inspiring shop!

PS. If you can’t afford to buy a copy now, the report is also available in pdf.

Shell hit with $1bn US lawsuit over Nigeria pollution

Within a day of the US Supreme Court decision to hear the case of Kiobel v Shell, which accuses Shell of complicity in crimes against humanity and human rights abuses in Nigeria during the 1990s, the oil giant was hit by another class action lawsuit for 50 years of pollution in the Niger Delta.

AFP reports:

The suit was brought on behalf of the people of Ogale in the Eleme local government area, where the UN [Environment Programme] team found the most serious groundwater contamination and people drinking water laced with cancer-causing benzene at 900 times World Health Organization guidelines.

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Tax dodging corporations keep Nigerians in poverty

New research from ActionAid has exposed the multinationals dodging taxes in Nigeria. Shell is considered to be among one of the biggest offenders. As Tunde Aremu of ActionAid reports:

Shell, with its massive interests in the Niger Delta, has 18 subsidiary companies located in Nigeria, but 455 in tax havens around the world. BP has six companies in Nigeria, but 537 registered in tax havens.

While this research does not prove tax avoidance in itself, multinationals need to explain why they have so many subsidiaries registered in tax havens. There are great challenges with getting accurate data on how much countries actually lose due to tax avoidance and the financial secrecy that tax havens create makes the task even more difficult. Despite this, it is suspected that the amounts lost would be enough to solve many of the country’s development challenges.

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