In a landmark ruling that opens the way for compensation claims against oil conglomerates, the High Court of Benin City in Nigeria has declared the flaring of natural gas illegal. Justice CV Nwokorie ruled that toxic flares that burn off natural gases, a by-product of oil extraction, contravened provisions of the Nigerian Constitution that guarantee citizens the right to life and human dignity.
The case was brought against oil giant Royal Dutch Shell by the Iwerekan community of the Niger Delta.
Shell, which controls nearly half of the country’s oil production capacity, and the Nigerian National Petroleum Corporation, immediately issued notice of an appeal. They have one month to challenge the ruling.
If it stands, it could open the way for residents of the oil-rich Niger Delta to sue the oil companies, believes Chima Williams one of the lawyers representing the local community that initiated the case. ”Under Nigerian law, the parties who suffer from the violation of a law can seek damages or compensation.”
The giant flares that pump clouds of black toxic smoke into the skies of the Niger Delta contribute more greenhouse gas emissions than any other single source in sub-Saharan Africa, according to environmentalists Friends of the Earth.
Environmental Rights Action, Friends of the Earth Nigeria and the Climate Justice Programme supported the Iwerekan community in Delta State in its case.
Delta residents say the flares, which have been burning since oil production began in the 1950s, have seriously harmed the environment. The constant flares disorient domestic animals and wildlife, as they are unable to tell the difference between day and night, while crop yields have been damaged by consequent acid rain.
But even if the appeal against the ruling is thrown out, gas flaring cannot be stopped without billions of dollars and several years worth of further investment.
Nine years ago, the government set a 12-year target to end gas flaring, and oil companies — bar the largest producer, Shell — claim they are on track to meet the 2008 deadline. Shell spokes-person Don Boham said the company and its Nigerian partners have, in the past five years, invested $2-billion in projects aimed at putting the flared gas into economic use. He said a further expenditure of $1,85-billion would enable Shell to end all gas flaring in its operations by 2009, a year later than the government target.
Boham blamed the delay on the Nigerian government’s failure to meet its funding obligations in the joint venture.
”The original target date … was predicated on the joint venture programme being fully funded to deliver the required gas-gathering projects. This was not achieved.”
For the first 40 years of oil production in Nigeria, all natural gas occurring in the course of oil production was simply burned away because oil companies were discouraged by the huge investments required to harness the gas.
Revenue estimated at more than $2,5-billion yearly was lost through flaring. It is a major source of conflict with oil communities that complain of being cheated out of oil wealth produced on their land while being left simultaneously to suffer the environmental consequences.
In the past decade, investments have been made to use the wasted gas, which is reputed to be a cleaner energy source than crude oil. In September, work began on the West Africa Gas Pipeline, which will transport Nigerian natural gas from the oil fields of the Niger Delta along the coast to Ghana, via Benin and Togo, promising cheaper and more reliable power for millions of residents by the end of 2006.