UK court rules Shell liable for legacy oil spills in Nigeria

Shell-oil

The High Court in London has ruled that Shell plc and its former Nigerian subsidiary can be held legally responsible for historic oil pollution in the Niger Delta, a decision that paves the way for a full trial in 2027.

The case, brought by the Bille and Ogale communities in Rivers State, relates to decades of environmental degradation allegedly caused by oil spills from Shell-operated infrastructure.

Justice May, who delivered the ruling on Friday, June 20, 2025, rejected Shell’s attempt to limit its liability and bar claims related to oil spills that occurred more than five years ago.

She held that failure to clean up such spills constitutes an ongoing breach of Shell’s legal obligations, which may give rise to fresh claims as long as the pollution persists.

Shell had argued that damage claims were barred under Nigerian law if they were not filed within five years of the incident. However, the judge ruled that this limitation did not apply to situations where pollution remains unremediated. She found that oil contamination could amount to trespass, generating new legal claims for each day the pollution remains on affected land.

During the preliminary issues trial, which lasted from February 13 to March 7, Shell also tried to deflect blame by attributing much of the pollution in the Niger Delta to oil theft and illegal refining. The communities’ legal representatives, from the firm Leigh Day, argued that Shell failed to take effective steps to prevent such illegal activity and may be held liable where its own staff or contractors were complicit.

Justice May agreed that Shell could be held responsible if it failed to protect its pipelines or if evidence emerges of employee involvement in the illegal bunkering and refining operations that caused environmental damage. These issues are expected to form a key part of the full trial in 2027.

The judge also dismissed Shell’s claim that Nigerian legal provisions shield its parent company, Shell plc, from liability. This means that both the parent company and its former subsidiary, now renamed Renaissance, will face scrutiny over their role in environmental damage affecting tens of thousands of residents in the Bille and Ogale communities.

The case builds on a growing body of precedent following the UK Supreme Court’s decision in Okpabi v Shell plc, which affirmed that parent companies can be held liable for the actions of foreign subsidiaries under certain conditions.

The plaintiffs also alleged that Shell’s pollution violated their constitutional rights under Nigerian law and the African Charter on Human and Peoples’ Rights. While Justice May recognised that environmental harm could engage the right to life under Nigeria’s constitution, she ruled that this issue should be determined by Nigerian courts.

The court acknowledged increasing judicial recognition in Nigeria of the link between environmental degradation and fundamental rights but declined to adjudicate on constitutional issues from a UK bench.

The Bille and Ogale communities have been seeking clean-up and compensation since filing the case in 2015. A 2011 United Nations Environment Programme (UNEP) report had documented severe environmental contamination and associated health risks in Ogoniland.

Reacting to the ruling, King Bebe Okpabi of the Ogale community called on Shell to end its legal resistance and work towards resolving the situation. “People in Ogale are dying,” he said. “Shell needs to bring a remedy.”

Leigh Day partner Matthew Renshaw described the ruling as a major legal development for holding multinational corporations accountable for environmental harm. He said the outcome allows claims over longstanding pollution and failures to prevent harm arising from oil theft and illegal refining to move forward.

The full trial, now scheduled for early 2027, will consider Shell’s alleged failure to clean up contaminated sites, as well as its responsibility for pollution caused by criminal sabotage where company negligence or complicity is proven.

GUARDIAN Newspapers