BBC NEWS: Nigerian senators threaten Shell: “Shell is consulting its lawyers as Nigeria threatens to impose sanctions. Nigeria's senate is to consider sanctions against Shell for failing to pay a $1.5bn (£775m) pollution penalty. The Dutch and UK oil company had until 23 November to make the payment for environmental damage caused by oil spillage in the Niger Delta region.”: “…the committee was also investigating Shell's activities in Nigeria in the past four decades, and its impact on the Niger Delta.” (ShellNews.net) 2 Dec 04

Shell is consulting its lawyers as Nigeria threatens to impose sanctions

Nigeria's senate is to consider sanctions against Shell for failing to pay a $1.5bn (£775m) pollution penalty.

The Dutch and UK oil company had until 23 November to make the payment for environmental damage caused by oil spillage in the Niger Delta region.

Nigerian lawmakers are to examine recommendations for penalties in the next two weeks.

A letter from Shell rejected the compensation order, describing it as "flawed", Senator John Brambaifa said.

The payment resolution was issued by the senate in August, but does not have force of law.

It was approved following a petition by residents of the oil-rich state of Bayesla.

Mr Brambaifa, who chair the Senate committee on the Niger Delta, accused the firm of "effrontery", and said it was challenging Nigeria's sovereignty.

He added that his committee would recommend measures against Shell's Nigerian subsidiary in the next couple of weeks.

"The committee is not very happy with the way Shell has treated the national assembly and so anything can happen," he told BBC News.

He said the committee was also investigating Shell's activities in Nigeria in the past four decades, and its impact on the Niger Delta.

Shell said the oil spillage occurred during a joint venture with the Nigerian National Petroleum Corporation, Agip, and Elf, and therefore it could not be held solely responsible.

http://news.bbc.co.uk/1/hi/business/4060233.stm