ARTICLE
1 September 2025

Responsibility Of Shell For Legacy Oil Pollution In Nigeria

KL
Herbert Smith Freehills Kramer LLP

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On 20 June 2025, in a landmark decision, the High Court ruled that Shell plc and its former Nigerian subsidiary, Shell Petroleum Development Company of Nigeria...
United Kingdom Environment

On 20 June 2025, in a landmark decision, the High Court ruled that Shell plc and its former Nigerian subsidiary, Shell Petroleum Development Company of Nigeria (SPDC), can be held legally responsible for legacy oil pollution in the Niger Delta. This ruling marks a significant step forward for environmental accountability and corporate responsibility in cases involving multinational companies operating abroad.

The case was brought by Nigerian claimants, including communities from the Ogale and Bille regions, who have suffered from the effects of oil spills in the local area. The claimants argued that Shell failed to properly clean up pollution and prevent further environmental damage.

Shell had previously argued that it could not be held liable for the actions of its Nigerian subsidiary. However, the High Court rejected this position, stating that Shell plc may bear responsibility due to its oversight and control over SPDC's operations. The ruling allows the case to proceed to trial, where the full extent of Shell's liability will be examined. The claimants argued that the claim was outside Nigerian state limitation laws, however the Court held that whilst the case is subject to a 5-year limitation period, there can be a new cause of action (in trespass) for each day that oil remains on a claimant's land.

The court's decision resolves key legal questions, however the claim against Shell plc will be examined at trial, expected to take place in early 2027.

With appreciation to Amineh Farasatmand for her contribution in preparing this blog.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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