Bonga spill could cost Shell $5bn

Spill: Nigeria regulators say Shell should pay $5 billion for 2011 spill

Nigerian regulators have told parliament that Shell should be fined $5 billion for environmental damaged caused by an oil spill at its offshore Bonga field, one of the biggest in the history of Africa's largest energy industry.

The Anglo-Dutch supermajor said on Tuesday there was no legal basis for the proposed fine, Reuters reported.

The National Oil Spill Detection and Response Agency (NOSDRA) told a parliamentary committee on Monday that although last year's spill, estimated at around 40,000 barrels, was contained offshore, there was a serious environmental threat, according to the news wire.

NOSDRA said the spill was caused by a failure in Shell's oil export hose.

"The spilled barrels impacted approximately 950 square kilometers of water surface, affected a great number of sensitive environmental resources," the NOSDRA presentation to the environment committee of the national assembly said.

"It…

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