A Dutch court ordered Shell Nigeria to indemnify farmers for large oil spills that they said caused widespread pollution.
On Friday, an appeals court in The Hague dismissed Shell’s argument that the leaks were the result of sabotage, saying that insufficient evidence was provided.
The court ordered Shell’s Nigerian subsidiary to compensate farmers for losses caused by oil spills in the two villages of Goi and Oruma in 2004 and 2005. The amount of compensation had not yet been decided.
It also determined that the parent company, Royal Dutch Shell, and its subsidiary must install warning equipment in their Oruma pipelines to limit environmental damage in the event of another spill.
The court said that Shell Nigeria did not do enough to clean the soil around the spill sites.
Farmers claiming damages argued that the damage was caused by oil spills from the pipeline, which could have been prevented if Shell had installed the correct detection systems.
“Finally, there is some justice for the Nigerian people who suffer the consequences of Shell’s oil,” said Eric Dooh, one of the Nigerian plaintiffs, in a statement released by Friends of the Earth Netherlands, which supported the case. “This verdict brings hope for the future of people in the Niger Delta.”
Dooh’s father was one of two plaintiffs who died during the 13-year-old case.
The Hague appeals court ruled in 2015 that Dutch courts had jurisdiction in the case, seven years after the four farmers first sued, and after the debate over whether Shell’s parent company should be held responsible for the actions of the Nigerian subsidiary .
“This is fantastic news for the environment and the people who live in developing countries,” said the head of Friends of the Earth in the Netherlands, Donald Pols.
“This means that people in developing countries can take on the multinationals that harm them.”
Shell Nigeria said in a statement that it still believes the leaks were caused by sabotage and was disappointed by the decision. “Sabotage, theft of crude oil and illegal refining are a major challenge in the Niger Delta,” the document said.
“Like all ventures operated by Shell worldwide, we are committed to operating safely and protecting the local environment.”
The court also ruled that Shell proved that the sabotage was the cause of a third spill at an oil well in the village of Ikot Ada Udo, but did not decide whether Shell was responsible for the damage.