Oil giants fined €279m for toxic exposure at plant

THE Brazilian units of Anglo-Dutch oil giant Shell and Basf SE have been fined a total of 622 million reais (€279 million) after former workers suffered health problems because of contamination at a plant in Paulinia, Sao Paulo state, from the 1970s to 2002.

Basf SA and Shell do Brasil will also have to pay €29,000 in damages to each former worker and any children born during or after their service at the plant, according to a statement from the Paulinia Labour Court. The payments cover medical treatment, exams and individual damages for the toxic exposure.

In the early 1990s an international research agency found that the land and groundwater around the factory were contaminated with pesticides. The substances are known to be carcinogenic and affect the central nervous system.

Former workers at the Paulinia plant then have 90 days to present health documents. Basf and Shell both said they will appeal the decision.

“We are of the opinion that the environmental damage was caused by Shell, and we will appeal the decision,” Jennifer Moore-Braun, a spokeswoman for Basf in Germany, said.

The Paulinia unit was built by Shell in the late 1970s and in 1992 was sold to Cyanamid, which was later bought by Basf, according to the statement.

“Active remediation at the site has been under way for a number of years,” Kim Blomley, a spokesman at Shell in London, said in a statement.

“We are convinced there is no link between our operations and injury to people’s health based on blood tests of local residents, medical assessments of former workers and expert medical opinions.”