Executive Director of Oil Spill Victims Vanguard (OSPIVV), Harrison Jalla, has accused the Shell Trading and Shipping Company Limited (STATSCO) and its partners of diverting $1 billion insurance indemnity pollution claim intended for victims and communities in the Niger Delta impacted by the 2011 Bonga Oil Spill.

The allegation was contained in a suit numbered FHC/WR/CS/19/2022.

In a statement on Wednesday, Jalla said the alleged $1 billion insurance claim was meant to compensate communities that suffered severe pollution during the 2011 Bonga Oil Spill.

He noted that the Bonga Oil Spill which is one of the worst environmental disasters in the Niger Delta, occurred during the loading of crude oil by the vessel MT Nothia, owned by STATSCO and Shell Exploration and Production Company (SNEPCO).

“The insurance policy for the pollution indemnity, with Certificate Number 0492900, was insured for $1 billion.

“However, since 2011, STATSCO, in collaboration with Britannia Steamship Insurance Association Limited, diverted this compensation without informing Nigerian regulatory authorities or the impacted victims,” Jalla said.

He said the affected communities were left out of the compensation process despite the widespread environmental damage caused by the spill.

“The negligence during the loading of MT Nothia resulted in catastrophic pollution, yet the rightful beneficiaries of the insurance claim have been denied justice for over a decade.”

The suit against Shell and Britannia Steamship Insurance Association Limited, filed by OSPIVV in April 2022, seeks to recover the diverted insurance funds for the victims.

The legal battle is expected to be a landmark case, holding international oil companies accountable for their actions in Nigeria’s oil-rich region.

“The Bonga oil spill left devastating effects on the livelihood and environment of the Niger Delta communities. This suit is not just about compensation, but about holding these corporations accountable for their actions,” Jalla added.

He said the insurance claim in question had been concealed from key Nigerian agencies, including the National Oil Spill Detection and Response Agency (NOSDRA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), further complicating efforts to secure justice for the victims.