Lagos - Nigeria has fined Shell $5bn over an oil spill
late last year at an offshore field, but the company told AFP on Tuesday there
was no basis for the fine.
Shell was forced to halt operations at the Bonga oilfield in
the Gulf of Guinea following the December 20 leak of some 40,000 barrels of
Nigerian authorities levelled the fine on Shell's local
operation, the head of the state-run National Oil Spill Detection and Response
Agency, Peter Idabor, told a parliamentary hearing on Monday.
Idabor said the "administrative penalty" on Shell
Nigeria Exploration and Production Company (SNEPCO) was in line with
international industry practice.
But Shell spokesperson Tony Okonedo said the fine was
unwarranted as the company had acted quickly to contain the spill.
"We do not believe there is any basis in law for such a
fine. Neither do we believe that SNEPCO has committed any infraction of
Nigerian law to warrant such a fine," Okonedo told AFP.
"SNEPCO responded to the incident with professionalism
and acted with the consent of the necessary authorities at all times to prevent
environmental impact as a result of the incident," he said.
Shell can contest the penalty in court.
An expert on Shell's operations in Nigeria with rights group
Amnesty International, Audrey Gaughran, said the fine was the heftiest ever
levelled by the country and applauded the move.
But, she added, it was crucial for Nigeria to specify the
justification for the penalty, including whether negligence by Shell led to the
"There is very little guarantee that it won't happen
again because it's not yet clear what happened in the first place," she
Nigeria has typically penalised companies over inadequate
cleanups after spills.
But the investigative body, with its limited capacity, has
previously been unable to establish that some spills were caused by the failure
of major oil companies to properly maintain and manage their equipment,
Often, she explained, oil companies are charged with
investigating the incidents themselves.
"What we want Nigeria to tell is, 'who did the
investigation and exactly what went wrong?' " she said.
Officials said the incident was Nigeria's worst offshore
spill since a 1998 Mobil incident, though onshore leaks are common in the
oil-producing Niger Delta.
Bonga, which has a capacity of 200,000 barrels per day, is
located some 120 kilometres (75 miles) off the coast of Nigeria, Africa's top
oil producer and the eighth largest in the world.