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North Sea giants ordered to seal abandoned oil wells
North Sea giants ordered to seal abandoned oil wells

Telegraph

time10-07-2025

  • Business
  • Telegraph

North Sea giants ordered to seal abandoned oil wells

Britain's North Sea operators have been ordered to tackle hundreds of abandoned wells drilled around UK coasts amid fears they could pour polluting oil and gas into the sea. The North Sea Transition Authority (NSTA), which regulates the industry, has threatened to fine them millions of pounds if they continue to shirk the job. It found there are up to 1,000 wells which have the potential to leak oil and methane into UK waters – a risk that will persist forever unless they are permanently plugged. Some are drilled thousands of metres into bedrock, making plugging them even harder. The NTSA also warned that many of the drilling rigs needed to find and seal abandoned wells are being pulled out of the North Sea because windfall taxes and new regulations imposed by the Government are wiping the UK industry out. 'By law, operators must decommission oil and gas infrastructure, including permanently inactive wells, to protect the marine environment ... A backlog of more than 500 wells which missed their decommissioning deadline has built up and – unless operators quickly ramp up their activities – the figure could grow considerably,' the NSTA said. 'In excess of 1,000 additional wells are expected to be due for decommissioning between 2026 and 2030.' It added: 'Operators must immediately start tackling their backlog of wells that are already due for decommissioning to stop rigs leaving the North Sea and prevent billions of pounds of additional costs for themselves and taxpayers. 'Some companies are showing good performance in meeting their regulatory duty to decommission wells which have permanently stopped producing, but too many have delayed this work and fallen behind.' The NSTA did not name the main culprits, but its ruling applies to all companies operating around the UK now or in the past. Larger companies like Shell and BP, which were once amongst the most active in the North Sea, are thought to have a better record than the multitude of smaller companies that now dominate the UK offshore sector. Cost of decommissioning The UK oil and gas industry has been operating for nearly 60 years, during which time an estimated 8,000 holes have been drilled deep into the seabed in areas suspected of containing fossil fuels. Some were successful, leading to commercially viable reserves, but most were either dry or contained too little oil or gas to be worth exploiting. Such wells are temporarily sealed but must later be permanently plugged with marine cement that will prevent oil or gas from bubbling up into the sea at a later date. Subsea surveys have already shown that many such abandoned wells are leaking fossil fuels into the sea. However, the cost of decommissioning will likely soon outstrip the income generated by the UK's shrinking oil and gas reserves. Offshore Energies UK, a trade body, has estimated that it will cost around £25bn to decommission the redundant wells, pipelines and platforms spread across the UK's North Sea, Irish Sea and eastern Atlantic waters over the next decade.

Shell to face High Court trial over legacy oil pollution in 2027
Shell to face High Court trial over legacy oil pollution in 2027

Yahoo

time20-06-2025

  • Business
  • Yahoo

Shell to face High Court trial over legacy oil pollution in 2027

Oil giant Shell will now face a full trial in London's High Court in 2027 over allegations it was legally responsible for legacy oil pollution in Nigeria. Shell Plc and a Nigerian-based subsidiary of the company, now known as the Renaissance Africa Energy Company, are being sued by members of the Bille and Ogale communities in the Niger Delta. The legal action is led by the claimant law firm Leigh Day, which began legal action in 2015. The claim contains allegations that years of chronic oil spills have left the communities, which have a combined population of 50,000, without access to clean water, unable to farm and fish, and with a serious ongoing risk to public health. The case has been through several courts, including the High Court in 2017 and the Court of Appeal in 2018. Both courts ruled that there was no arguable case that Shell owed the claimants a duty of care. However, the Supreme Court overturned those in 2021, viewing that there was a 'real issue to be tried'. The High Court went on to green-light the legal battle in November 2023. The parties went to a preliminary issues trial between February and March this year at the court, where Mrs Justice May had to rule on several issues, including Shell's rejected argument on liability and concluded that the oil giant can still be liable for these spills. Shell argued that there was a strict five-year limitation period. However, the judge, in her 102-page judgment, rejected the argument and left it open for the communities to claim compensation for oil spills that occurred more than five years ago. She stated that 'some 85 spills have, so far, been identified,' and despite it being launched 10 years ago, she added that this case was 'still at a very early stage'. The judge also found that Shell could be liable for damage resulting from bunkering or illegal refining if it failed to protect its infrastructure, particularly if there is evidence that its staff have been complicit in the illegal activities. Leigh Day partner Matthew Renshaw said: 'Shell's attempts to knock out or restrict these claims through a preliminary trial of Nigerian law issues have been comprehensively rebuffed.' 'This outcome opens the door to Shell being held responsible for their legacy pollution as well as their negligence in failing to take reasonable steps to prevent pollution from oil theft or local refining,' he added. A spokesperson for Shell said the company welcomed this judgement. 'For many years, the vast majority of spills in the Niger Delta have been caused by third parties acting unlawfully, such as oil thieves who drill holes in pipelines, or saboteurs.' 'This criminality is the cause of the majority of spills in the Bille and Ogale claims, and we maintain that Shell is not liable for the criminal acts of third parties or illegal refining. These challenges are managed by a joint venture which Shell's former subsidiary operated, using its expertise in spill response and clean-up.' 'The spills referenced in this litigation were cleaned up by the joint venture regardless of the cause, as required by Nigerian law, working closely with government-owned partner NNPC Ltd, Nigerian government agencies and local communities.' 'Clean-up certificates were issued by the Nigerian regulator NOSDRA,' the spokesperson added. The trial, which will be closely watched, is set to take place over four months from March 2027.

Nigerian communities set to have oil pollution High Court claims tried in 2027
Nigerian communities set to have oil pollution High Court claims tried in 2027

The Independent

time20-06-2025

  • Business
  • The Independent

Nigerian communities set to have oil pollution High Court claims tried in 2027

Residents of two Nigerian communities who are taking legal action against Shell over oil pollution are set to take their cases to trial at the High Court in 2027. Members of the Bille and Ogale communities in the Niger Delta, which have a combined population of around 50,000, are suing Shell plc and a Nigerian-based subsidiary of the company, the Shell Petroleum Development Company of Nigeria, which is now the Renaissance Africa Energy Company. The two communities began legal action in 2015, claiming they have suffered systemic and ongoing oil pollution for years due to the companies' operations in the African country, including pollution of drinking water. They are seeking compensation and asking for the companies to clean up the damage caused by the spills. The companies are defending the claims, saying that the majority of spills are caused by criminal acts of third parties or illegal oil refining, for which they are not liable. On Friday, Mrs Justice May ruled on more than 20 preliminary issues in the claims, following a hearing held in London over four weeks in February and March. She said that 'some 85 spills have, so far, been identified', but added that the case was 'still at a very early stage'. Her findings included that Shell could be sued for damage from pipeline spills caused by third parties, such as vandals, in efforts to steal oil, a process known as bunkering. She also said that while there was a five-year limitation period on bringing legal claims, a 'new cause of action will arise each day that oil remains' on land affected by the spills. The cases are due to be tried over four months, starting in March 2027. Reacting to the ruling, the leader of the Ogale community, King Bebe Okpabi, said: 'It has been 10 years now since we started this case, we hope that now Shell will stop these shenanigans and sit down with us to sort this out. ' People in Ogale are dying; Shell need to bring a remedy. 'We thank the judicial system of the UK for this judgment.' Matthew Renishaw, international development partner at law firm Leigh Day, which represents the claimants, said: 'This outcome opens the door to Shell being held responsible for their legacy pollution as well as their negligence in failing to take reasonable steps to prevent pollution from oil theft or local refining.' He continued: 'Our clients reiterate, as they have repeatedly for 10 years, that they simply want Shell to clean up their pollution and compensate them for their loss of livelihood. 'It is high time that Shell stop their legal filibuster and do the right thing.' A Shell spokesperson said that the company welcomed the judgment. They said: 'For many years, the vast majority of spills in the Niger Delta have been caused by third parties acting unlawfully, such as oil thieves who drill holes in pipelines, or saboteurs. 'This criminality is the cause of the majority of spills in the Bille and Ogale claims, and we maintain that Shell is not liable for the criminal acts of third parties or illegal refining. 'These challenges are managed by a joint venture which Shell's former subsidiary operated, using its expertise in spill response and clean-up. 'The spills referenced in this litigation were cleaned up by the joint venture regardless of the cause, as required by Nigerian law, working closely with government-owned partner NNPC Ltd, Nigerian government agencies and local communities. 'Clean-up certificates were issued by the Nigerian regulator NOSDRA.' The High Court and the Court of Appeal ruled in 2017 and 2018, respectively, that there was no arguable case that Shell owed the claimants a duty of care, but the Supreme Court ruled in 2021 that there was a 'real issue to be tried'.

Nigerian communities to take Shell to high court over oil pollution
Nigerian communities to take Shell to high court over oil pollution

The Guardian

time20-06-2025

  • Business
  • The Guardian

Nigerian communities to take Shell to high court over oil pollution

Residents of two Nigerian communities who are taking legal action against Shell over oil pollution are set to take their cases to trial at the high court in 2027. Members of the Bille and Ogale communities in the Niger delta, which have a combined population of about 50,000, are suing Shell and a Nigerian-based subsidiary of the company, the Shell Petroleum Development Company of Nigeria, which is now the Renaissance Africa Energy Company. The two communities began legal action in 2015, claiming they have suffered systemic and ongoing oil pollution for years due to the companies' operations in the African country, including the pollution of drinking water. They are seeking compensation and asking for the companies to clean up damage caused by the spills. The companies are defending the claims, saying that the majority of spills are caused by the criminal acts of third parties or illegal oil refining, for which they are not liable. On Friday, Mrs Justice May ruled on more than 20 preliminary issues in the claims after a hearing held in London over four weeks in February and March. She said that 'some 85 spills have, so far, been identified', but added that the case was 'still at a very early stage'. Her findings included that Shell could be sued for damage from pipeline spills caused by third parties, such as vandals, in efforts to steal oil, a process known as bunkering. She also said that, while there was a five-year limitation period on bringing legal claims, a 'new cause of action will arise each day that oil remains' on land affected by the spills. The cases are due to be tried over four months, starting in March 2027. Reacting to the ruling, the leader of the Ogale community, King Bebe Okpabi, said: 'It has been 10 years now since we started this case. We hope that now Shell will stop these shenanigans and sit down with us to sort this out. People in Ogale are dying; Shell need to bring a remedy. We thank the judicial system of the UK for this judgment.' A Shell spokesperson said that the company also welcomed the judgment. They said: 'For many years, the vast majority of spills in the Niger Delta have been caused by third parties acting unlawfully, such as oil thieves who drill holes in pipelines or saboteurs. 'This criminality is the cause of the majority of spills in the Bille and Ogale claims, and we maintain that Shell is not liable for the criminal acts of third parties or illegal refining. These challenges are managed by a joint venture, which Shell's former subsidiary operated, using its expertise in spill response and clean-up.'

Nigerian communities set to have oil pollution High Court claims tried in 2027
Nigerian communities set to have oil pollution High Court claims tried in 2027

Yahoo

time20-06-2025

  • Business
  • Yahoo

Nigerian communities set to have oil pollution High Court claims tried in 2027

Residents of two Nigerian communities who are taking legal action against Shell over oil pollution are set to take their cases to trial at the High Court in 2027. Members of the Bille and Ogale communities in the Niger Delta, which have a combined population of around 50,000, are suing Shell plc and a Nigerian-based subsidiary of the company, the Shell Petroleum Development Company of Nigeria, which is now the Renaissance Africa Energy Company. The two communities began legal action in 2015, claiming they have suffered systemic and ongoing oil pollution for years due to the companies' operations in the African country, including pollution of drinking water. They are seeking compensation and asking for the companies to clean up the damage caused by the spills. The companies are defending the claims, saying that the majority of spills are caused by criminal acts of third parties or illegal oil refining, for which they are not liable. On Friday, Mrs Justice May ruled on more than 20 preliminary issues in the claims, following a hearing held in London over four weeks in February and March. She said that 'some 85 spills have, so far, been identified', but added that the case was 'still at a very early stage'. Her findings included that Shell could be sued for damage from pipeline spills caused by third parties, such as vandals, in efforts to steal oil, a process known as bunkering. She also said that while there was a five-year limitation period on bringing legal claims, a 'new cause of action will arise each day that oil remains' on land affected by the spills. The cases are due to be tried over four months, starting in March 2027. Reacting to the ruling, the leader of the Ogale community, King Bebe Okpabi, said: 'It has been 10 years now since we started this case, we hope that now Shell will stop these shenanigans and sit down with us to sort this out. 'People in Ogale are dying; Shell need to bring a remedy. 'We thank the judicial system of the UK for this judgment.' Matthew Renishaw, international development partner at law firm Leigh Day, which represents the claimants, said: 'This outcome opens the door to Shell being held responsible for their legacy pollution as well as their negligence in failing to take reasonable steps to prevent pollution from oil theft or local refining.' He continued: 'Our clients reiterate, as they have repeatedly for 10 years, that they simply want Shell to clean up their pollution and compensate them for their loss of livelihood. 'It is high time that Shell stop their legal filibuster and do the right thing.' A Shell spokesperson said that the company welcomed the judgment. They said: 'For many years, the vast majority of spills in the Niger Delta have been caused by third parties acting unlawfully, such as oil thieves who drill holes in pipelines, or saboteurs. 'This criminality is the cause of the majority of spills in the Bille and Ogale claims, and we maintain that Shell is not liable for the criminal acts of third parties or illegal refining. 'These challenges are managed by a joint venture which Shell's former subsidiary operated, using its expertise in spill response and clean-up. 'The spills referenced in this litigation were cleaned up by the joint venture regardless of the cause, as required by Nigerian law, working closely with government-owned partner NNPC Ltd, Nigerian government agencies and local communities. 'Clean-up certificates were issued by the Nigerian regulator NOSDRA.' The High Court and the Court of Appeal ruled in 2017 and 2018, respectively, that there was no arguable case that Shell owed the claimants a duty of care, but the Supreme Court ruled in 2021 that there was a 'real issue to be tried'.

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