Shell’s agreement with Bodo community is a record out-of-court-settlement for the region but a fraction of the £300m originally sought by the Niger Delta residents. Shell had previously said it was only willing to pay £30m a minute amount when compared to the huge multi billion compensation and fines paid by BP following the Macondo rig disaster in the Gulf of Mexico in 2010.

Speaking on its recent payout, the British law firm Leigh Day state “In the aftermath of the spills Shell originally offered £4,000 (four thousand pounds GBP) compensation to the entire Bodo community before the villagers sought legal representation from lawyers in London, where Shell have their headquarters.”

The payment will be split in two halves. £35 million will be shared evenly between 15,000 people from the Bodo community with each receiving approximately £2000. The remaining £20 million will be allocated to a trust fund for health and educational projects such as building schools and clinics.

Activists in Port Harcourt, Nigeria protest to demand that Shell pay reparations and clean up its oil spills. © Amnesty International

Lawyers fight over reparations cash cow

In 2012, the British law firm Leigh Day began court proceedings against the Shell Petroleum Development Company of Nigeria on behalf of the Bodo Community. Soon afterwards CW Law, another British legal law firm made counter-allegations against Leigh Day. Egbegi and co, another law firm working with CW Law then obtained an injunction from the high court in Bayelsa state, Nigeria. Egbegi and co said this was to prevent Leigh Day from “interfering” with its 7,400 Ogoni clients which Leigh Day claimed it had ‘poached’ from them. After a hearing in a London court a UK judge backed Leigh Day and agreed to block the deal between Shell and CW Law.

Leigh Day, the British law firm acting for the community is expected to receive a multimillion pound pay-out.

Referring to a meeting with representatives of the 15,000 member community, Martyn Day from Leigh Day, said: “In the week before Christmas I personally met with around 800 clients and I don’t think I have ever seen a happier bunch of people. Every single one of the clients we met has said yes to the deal.”

Chief Sylvester Kogbara, Chairman of the Bodo Council of Chiefs and Elders, said: “For now, the Bodo community is very happy that this case has been finally laid to rest. The hope is that this will forge a good relationship with Shell for the future, not only with the Bodo people but with all the Niger Delta communities that have been impacted in the same way as us.”

In 2009 the oil giant also agreed to pay £9.6m to settle a legal action over its collaboration with the execution of the writer Ken Saro-Wiwa and eight other leaders of the Ogoni tribe of southern Nigeria.