Oil-rich Niger Delta communities are seeking 505 billion naira ($310 million) in damages from Shell, alleging that the oil giant breached a court order by proceeding with the sale of its onshore assets in the Niger Delta.

The legal challenge, filed on Friday, accuses Shell of violating a December 2023 court ruling that barred any asset sales until a compensation lawsuit was resolved.

Shell, which has agreed to exit Nigeria’s onshore oil and gas sector, announced in January that it would sell its business to a consortium of five largely local companies for $2.4 billion.

The move is part of Shell’s broader strategy to divest from its onshore operations in Nigeria.

However, over 1,200 representatives from the Ilaje communities in the Niger Delta have petitioned the Federal High Court in Abuja to halt the transaction.

They argued that Shell’s actions contravened the court’s directive, which suspended the sale pending the outcome of the compensation case.

The communities are suing Shell over alleged environmental damage caused by oil spills, which they claim have devastated waterways and farmland.

Shell has consistently maintained that oil spills in the region are primarily due to theft and vandalism rather than operational failures.

Despite the claims, the communities argue that Shell’s decision to press ahead with the asset sale is a direct affront to the court’s orders and an attempt to evade accountability.

In their court filings, the community representatives assert that Shell should face penalties for disregarding the court’s preservative orders.

They contended that the ongoing suffering of their members is a direct result of Shell’s failure to comply with judicial directives.