Shell's NAM in Dutch 'Distress' Court Case

A Shell subsidiary will be defending itself in a Dutch case this week at the same time that the High Court in London hears an action brought by over 4,000 Nigerian villagers against parent company Shell.

Pieter Huitema of Dutch law firm De Haan will represent some 127 residents of the Groningen region of northern Netherlands. They say that earthquakes triggered by NAM’s gas production caused them ‘non-material damage’ as well as damage to the homes they live in.

Pieter Huitema, the lawyer representing residents (Photo credit: De Haan law firm)

The psychological distress case was initiated against NAM years ago; it will now be heard at the law court in the Dutch city of Assen on November 22. NAM, the Dutch upstream joint venture of Shell and ExxonMobil, will contest the claims.

NAM was instructed by the government this June to produce no more than 24bn m³/yr in the gas year starting October 2016, down from a limit of 27bn m³/yr in the previous gas year. That contrasts with 54bn m³/yr produced in calendar year 2013 when Groningen gas production was maximised, with government approval.

Several earthquakes, peaking with one of 3.6 magnitude on August 16 2012, have been officially blamed on increased gas production at the giant Groningen field, which is 60% owned and operated by NAM and 40% by state holding EBN.

Netherlands and Nigeria have historically been key gas producer countries for Shell, with the former also so for Exxon, but their importance has declined as a result of Dutch production cuts mandated by government and of sabotage of Nigerian gas installations by militant and other groups. 

Mark Smedley