Christian Aid, Friends of the Earth, Platform and the Stakeholder Democracy Network produced this briefing which details shared concerns for Shell's investors and oil and gas producing-communities in Nigeria.

"Shell Nigeria's role in the reserves crisis has highlighted failures in transparency in the company overall, that go deeper and broader, exposing Shell's investors and all of its stakeholder to increased risk" commented" Andrew Pendleton, senior policy advisor to Christian Aid.

The report analyses leaked documents commissioned by Shell, arguing that unless the oil company significantly changes direction in Nigeria - onshore operations may not be possible beyond 2008, if Shell is committed to remain within its Business Principles. This may end in a chaotic withdrawal that would be damaging and costly for all. Nigeria represents about 10% of Shell's overall business.

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• Reserves: Nigeria accounted for 36% of the Shell reserves debacle in 2004.
• Community Development: Auditors KPMG were "unable to form a conclusion" on Shell's community development spending in 2003.
• Spills: Shell's tardy and superficial clean-ups are making an already highly charged situation in Nigeria worse.
• Security: A leaked 2003 report produced for Shell warns that if the security situation deteriorates, Shell may have to go offshore by 2008.
• Environment: Shell Nigeria says its target of eliminating all routine gas flaring by 2008 is "becoming tight."

The report finds that failed relationships with communities, the potential for aggravating civil conflict and lack of transparency have combined to produce a crisis in the company's Nigerian operations. Oil represents 90% of Nigeria's export earnings. Shell is the major foreign operator, through a joint venture with Nigeria's state oil company. The stakes for Shell's shareholders and Nigerian stakeholders could not be higher.

Responding to the report's publication today, President of the Nigerian-based Ogoni rights organisation MOSOP- and co-defendant in the trial of Ken Saro-Wiwa in 1995 - Ledum Mitee said: "This report is an important contribution to an urgent debate. The reserves crisis has exposed the risks posed to all Shell's stakeholders by a lack of transparency that is cultural and endemic to the company's operations in Nigeria."