Daily Mail: Shell crisis over Nigeria violence

11 June 2004, OIL giant Shell may have to pull out of onshore operations in Nigeria within four years if violence worsens, a study it commissioned warns. 

Last night, however, the company was distancing itself from the findings.

Nigeria pumps out 9% of Shell's oil, but the Niger Delta area is plagued by tribal rows, violence and theft. Shell commissioned a study from a team of experts. Now the findings have leaked out.

Shell gave £46m last year for local development. But the experts said it inadvertently fed the conflict by the way it dealt with local issues.

Chris Finlayson, chairman of Shell Nigeria, admits that violence is a 'major concern'. Last year sabotage caused 141 oil spills - some of them started to trigger compensation.

Shell says it is committed to working with communities and the government to solve the problems.