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Monday, August 30, 2004 - Web posted at 10:53:54 GMT

Senate approves claim on Shell

LAGOS - Nigeria's Senate has passed a resolution asking Shell's Nigerian unit to pay a US$1,5 billion (N$9,9 billion) compensation to oilfield communities for environmental pollution, a Senate spokesman said last week.

"The motion was overwhelming passed and the Senate Committee on Petroleum (Upstream) was asked to monitor compliance," a Senate spokesman said.

Shell Petroleum Development Corp (SPDC), a unit owned by Royal Dutch/Shell, said it was not aware of the resolution.

"This resolution has not been communicated to SPDC," the company said in a statement, adding that the resolution would be binding "only if the law backs it".

SPDC operates through a joint venture in Nigeria in which it owns 30 per cent while state-run Nigerian National Petroleum Corp owns 55 per cent.

SPDC is also 10 per cent owned by France's Total and five percent by Agip, a unit of Italy's ENI.

The passage of the resolution through the Senate on Tuesday followed a petition by members of the Ijaw tribe in the southern Bayelsa state against Shell which was presented to the lower House of Representatives in 2003 and reviewed by an independent legal advisory panel set up by the lower house.

A company source said the case would probably end up in the courts.

-Nampa-Reuters

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