http://www.smh.com.au/news/0110/24/text/world15.html
The Sydney Morning Herald
Caring Shell sues youths for $48m
Date: 24/10/2001
London: Shell, the second largest oil group in the world, is to launch a
multi-million dollar legal action against six Nigerian youths alleged to
have vandalised one of its installations.
The case is intended to send a signal that militant acts will not be
tolerated, but there are fears it may further inflame passions in the Niger
delta.
The company submitted papers to the high court in Benin ahead of a case
this week over the loss of about $A1.6 million a day after an attack on a
flow station on September 27. If Shell is successful the youths could face
a bill of $A48 million, some estimate.
The case has shocked some locals. A company spokesman in London said it was
"not unprecedented but not common".
He added: "We are the victim of frequent acts of vandalism and sabotage
which is dangerous to human life and damages the environment. We have
decided to take civil action against the individuals responsible for the
acts of sabotage to send a signal that this kind of behaviour is not
acceptable."
Shell has been operating in Nigeria since the 1930s and produces one tenth
of its own total output, 300,000 barrels a day, from oilfields in the Delta
region.
Two years ago it decided to invest about $A15 billion in the country with
the development of an offshore field, some shallow water schemes and the
upgrading of a liquefied natural gas plant. But it has been dogged by
attacks on its production facilities and criticism of its way of operating
there.
It has been spending more than $100 million a year on community projects as
part of its aim to convince locals and the outside world that it is
committed to social corporate responsibility.
The decision to go to court demonstrates its frustration over local
militants who say they are fighting for a larger slice of national wealth.
Shell says the attack last month halted 40,000 barrels a day. Youths took
over the flow station and tried to shut it down. A build-up in pressure led
to an explosion that put it out of action and led to crude oil being
spilled over local woodland.
In a statement to the court, Shell said it had been "very sensitive to the
welfare and wellbeing of host communities". But it complained that its
staff had constantly been harassed and its equipment had been extensively
damaged.
The Guardian
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