Lagos — Shell on Monday night agreed to a $15.5 million settlement to end a lawsuit alleging its complicity in the execution of the Ogoni Nine, among them Ken Saro-Wiwa, playwright and environmental rights activist.

Sani Abacha sent them to the gallows on November 10, 1995 after a mock trial that sparked global outrage, accompanied by international sanctions against Nigeria and top officials of the military junta.

But Some in Ogoni expressed anger at the announcement on Tuesday.

"I am shocked. The entire people of Ogoni are upset. If the report is true, was it only the 'Ogoni Nine' that died for the struggle? What happens to others who lost their lives in the fight?" wondered Eddie Wikinna, a member of the Ogoni Contact Group.

Another group that does not want its name in print yet said unless the money is used for the development of the entire Ogoni land there will be protest. "We are still waiting to see how events unfold. It is not only the Ogoni Nine that died in the struggle, and it will be a disaster if anybody thinks otherwise."

However, the son of Saro-Wiwa, Ken Saro-Wiwa Jnr, said the pay out is a victory for human rights.

MOSOP also welcomed the payment in a statement issued by its Information Officer, Bari-ara Kpalap.

The statement noted that "whilst MOSOP welcomes this as victory for the Ogoni people and the non-violent tactics we employ, we do hope that this would be extended to the rest of the families of the Ogoni 13 and other victims across Ogoni and other parts of the Niger Delta."

Shell, which continues to operate in Nigeria, said it agreed to pay compensation so as to aid the "process of reconciliation," but denied culpability in the killings.

But "this gesture also acknowledges that, even though Shell had no part in the violence that took place, the plaintiffs and others have suffered," Malcolm Brinded, Shell Executive Director (Exploration and Production), said in a statement.

The lawsuit in the United States District Court in New York claimed Shell colluded with the Abacha regime to silence environmental and human rights activists in Ogoni, an area rich in the Niger Delta and covers about 400 square miles.

Shell started operating there in 1958.

The primary complaint against Royal Dutch Shell focused on activities by its subsidiary, Shell Petroleum Development Company of Nigeria (SPDC), which itself insisted in a statement on Tuesday that the compensation is a "humanitarian gesture," and not an acknowledgment of guilt.

The statement signed by SPDC Spokesman, Precious Okolobo, quoted SPDC Managing Director, Mutiu Sunmonu, as saying that "Shell has always maintained that the allegations were false and has been fully prepared to clear its name in court.

"However, the opportunity arose to settle the case by making a humanitarian gesture that would benefit the people of Ogoni and help reconciliation and peace, and the return to normalcy in Ogoni.

"The settlement also acknowledges that the plaintiffs and others suffered from the tragic turn of events in Ogoni, even though Shell had nothing to do with the violence that took place."

The lawsuit said Shell officials helped furnish police in the 1990s with weapons, participated in security sweeps, and encouraged troops that shot at villagers protesting the construction of a pipeline.

The plaintiffs also say Shell helped the government capture and hang Saro-Wiwa, John Kpuinen, Saturday Doobee, Felix Nuate, Daniel Gbokoo, Nordu Eawo, Baribor Bera, Paul Levera, and Barinem Kiobel.

Saro-Wiwa, leader of the Movement for the Survival of Ogoni People (MOSOP), led rallies against Shell, which he blamed for myriad oil spills and gas fires in Ogoni.

"I think he would be happy with this," said Saro-Wiwa Jnr, 40, who spoke in a telephone interview from London.

Though Shell denied any wrongdoing, "the fact that they would have to settle is a victory for us," he maintained.

Besides compensating the families, the money will pay for years of legal fees.

And a large chunk of it- roughly a third- will create a trust fund that will invest in social programmes such as education, agriculture, small enterprise, and adult literacy.

Shell has consistently maintained that it never advocated violence and that it lobbied Nigerian officials to grant Saro-Wiwa clemency.

But critics say Shell did so because of the bad publicity the case had generated.

"Is it enough to bring back the lives of our clients? Obviously not," said Jenny Green, a lawyer for the Center for Constitutional Rights in New York who helped file the lawsuit in 1996.

Green stressed, however, that it will send a message to Shell and other multinationals operating in developing countries.

The Shell settlement ends one of several legal battles brought against energy companies by indigenous peoples where they operate.

Villagers in Indonesia are suing Exxon Mobil, claiming it employed guards who kidnapped, tortured, and murdered civilians.

Chevron is awaiting a verdict from a Judge in Ecuador that could lead to a potential $27 billion judgment stemming from a dispute over the role of Texaco, which Chevron bought in 2001, in environmental damages in the Amazon rain forest.

The case against Shell was based on Alien Tort Claims Act. The 18th-century law was originally meant to combat piracy and allows foreigners to pursue corporations in U.S. courts.

At least one additional lawsuit alleging human rights abuses by Shell in Nigeria is pending in U.S. District Court in New York.

Fourteen years after the Nigerian activists were hanged, Saro-Wiwa Jr. said Shell has started to acknowledge that it needs a "social licence" to operate in foreign countries. For example, the company has agreed to pay for a study of environmental damage that drilling has caused the Ogoni region.

"They have a long way to go. But at least they realise some of their actions can come back to haunt them as we saw in New York."