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Nigerian Court Fines Oil Giant Nearly $10 Million For Spill
Tuesday, December 9, 2003

U.S.-based oil firm Exxon Mobil was ordered by a court in Nigeria to pay almost $10 million in damages to three Niger Delta communities for a 1998 oil spill, Nigerian officials said yesterday.

In a judgment handed down Friday, Justice Abdullahi Mustapha of Lagos' Federal High Court said the spill of between 40,000 and 100,000 barrels of crude oil into the region's river and
Oil Tank Image
marshlands caused by a rupture to an Exxon pipeline had resulted in environmental damage to the nearby villages of Bonny, Brass and Andoni.

In a statement yesterday that announced Exxon's intention to appeal, company spokesman Udom Inoyo said the company had closely monitored the effects of the spill and that "there was no discernible adverse effect on the people and the environment."

Nigeria is the fifth-largest source of U.S. oil imports and Exxon pumps about 800,000 barrels per day, much of it from the Niger Delta region (CNN.com, Dec. 8).

According to Integrated Regional Information Networks, relations between oil firms and local towns are often tense, and impoverished communities have accused the joint ventures by foreign companies and the government of cheating them out of wealth and harming the environment (IRIN, Dec. 8).
Copyright, National Journal Group, Year.

 
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