Oil Spillage: Court Orders N82b Payment To Akwa Ibom Communities

The Federal High Court sitting in Abuja has awarded about N81.9billion in favor of the people and members of Ibeno Clan in Ibeno Local Government Area of Akwa Ibom State, over damages and losses in the area caused by oil exploration done by Mobil Producing Nigeria Unlimited.

Justice Taiwo Taiwo gave the judgment on Monday in the (2012) suit filed by Hrh Obong (Dr) Effiong B. Archianga (JP) and nine others ( representing the Akwa Ibom clan) against the Nigerian National Petroleum Corporation (first defendant) , Mobil Producing Nigeria Unlimited (second defendant) and Exxon Mobil Corporation, United States(third defendant).

The judge agreed with the plaintiff that the defendants and their agents or contractors engaged in repeated oil Spills or gas flaring thereby constituting nuisance to the area.

The monies the judge directed the first and second defendants to pay were captured under what the plaintiff tagged as “Special Damages, Damages For Intangible Losses, General Damages.”

Reacting to the verdict, the communities’ counsel, Lucius E. Nwosu, Esq. (SAN), told newsmen that he was shocked that Nigerian professors were deployed by the offending companies to do some mischief in terms of evidence thereby dragging the matter for so long.

He added that the judgment was a win-win for the host communities where Mobil had been operating about 300 oil wells to the detriment of its people.

“It is congratulations to the Nigerian judiciary and to the people of Ibeno community in Akwa Ibom State from where 353 oil wells are being produced by Exxon Mobil through their subsidiary and joint venture with the NNPC.

“The litigation has lasted since 2012 while the damage has been there for more than that period.

“Indeed, when you mention the amount of money, you forget that the amount of money claimed as at 2012 has lost over 7% of its value in exchange to the dollar that denominates the crude oil harvested from their area, sold by the companies for profit while their area is polluted and rendered completely hopeless,” he said.

Archianga had sought the following endorsements against the defendants:

“A consequential order declaring the 1st defendant as the sole owner of the oil concessions, oil blocks, assets and finances arising from the purported Joint Venture operations or Production sharing Contracts entered into by or through the 2nd defendant over and above its Share capital or the liability of its shareholders afore pleaded, and a fortiori, that the 1st defendant shall assume full responsibility to pay the damages claimed in this suit which is more than five hundred times in excess of the Share capital of the 2nd defendant or ultimate liability of its two shareholders.

“SPECIAL DAMAGES as annotated in items i, ii and iii under the head SUMMARY OF VALUES in the Plaintiffs’ Chartered Valuer’s Report – N29,112,157,500.00

“DAMAGES FOR INTANGIBLE LOSSES as itemized under items (iv), (v) and (vi) under the head SUMMARY OF VALUES in the Plaintiffs’ Chartered Valuer’s Report – N42,813,000,000.00

“GENERAL DAMAGES – N28,074,842,500.00 TOTAL – N100,000,000,000 (USD$ equivalent $66,666,666.6 @ N150 to USD1.0)

“An order of mandamus directing the 1st defendant to discharge its duties by ensuring that their joint venture operators do clean up, detoxify and rehabilitate the Plaintiffs lands ecosystem, underground waters and air quality.”