Bonga Oil Spill: Shell, Partner Face Allegations Of Concealing, Diverting $1 Billion Insurance Claim

Shell Trading and Shipping Company Limited (STATSCO) and Britannia Steamship Insurance Association Limited, have been accused of diverting a whopping $1 billion insurance indemnity claim meant to compensate victims of the 2011 Bonga oil spill in the Niger-Delta.

Executive Director of Oil Spill Victims Vanguard (OSPIVV), an NGO advocating for oil spill victims’ rights, Harrison Jalla, alleged that STATSCO and SNEPCO concealed the $1 billion insurance policy from Nigerian regulatory authorities, including NOSDRA and NIMASA.

BIGPEN NIGERIA (https://bigpenngr.com) reports that Jalla, made the allegation, on Wednesday, at a press conference in Effurun, near Warri, Delta State.

The policy, with certificate number 0492900, was meant to provide relief to affected communities of 2011 Bonga oil spill.

“The ship brought by STATSCO to load at the SNEPCO Bonga FPSO was insured against pollution for $1 billion, but SNEPCO concealed the information and denied victims their rightful compensation,” Jalla said.

“The pollution indemnity insurance claim was standard procedure in case of pollution during crude loading, but they concealed and diverted the fund collected from the insurance company.”

Displaying various documents, Jalla hinted that they got wind of the insurance policy with certificate number 0492900, for the pollution indemnity of MT Nothia with IMO Number 9399480, through a whistle blower.

Jalla disclosed that in a bid to fight for their rights, the victims had filed a suit against Shell Group and Britannia Steamship Insurance Association Ltd in April 2022 with the aim to recover the diverted compensation.

He said that the claimants in Suit No: FHC/WR/CS/19/2022 at the Federal High Court sitting in Warri, are set to receive a judgment awarding $1 billion in Insurance indemnity pollution claims in their favor as rightful beneficiaries.

Jalla, said that the lawsuit which was a straight forward one was aims to recover the diverted compensation for the rightful beneficiaries – the victims and communities impacted by the Bonga oil spill.

“The Niger Delta communities suffered severe pollution due to gross negligence, and instead of compensating the victims, the companies conspired to divert the $1 billion meant for the rightful beneficiaries,” he added.

“We will not rest until justice is served and the rightful beneficiaries receive their due compensation.

“The concealment of the insurance policy is a clear indication of Shell’s disregard for the well-being of the affected communities.

“We urge the Nigerian government to take decisive action against Shell and ensure that the victims receive fair compensation.”, he added.

He said that although Nigerian regulatory authorities, including NOSDRA and NIMASA had fined SNEPCO $3,600,191,206.00 billion and $6.5 billion respectively as compensation and punitive damage for the spillage, they were unaware of the $1 billion insurance indemnity pollution claim.

He maintained that the lawsuit by the victims for compensation which is lingering in court, is different from the demand for the remittance of $1Billion insurance claim.