Thursday, September 25, 2008

NUPENG Threatens Strike Against Chevron

A local branch of the National Union of Petroleum and Natural Gas Workers, or NUPENG, in Nigeria said Wednesday it would begin a strike at Chevron Nigeria Ltd. - a local unit of U.S. oil major Chevron Corp. (CVX) - if the company failed to resolve some labor issues by Oct. 1.

Bernard Ugbi, NUPENG's assistant general secretary in the southern oil city of Warri, said Chevron has been given a 14-day ultimatum to resolve issues on union workers hired and working at all CNL locations in the country as contractors.

He said NUPENG opposed the employment of its members as contractors, adding that the 3,000-5,000 workers involved usually don't qualify for pension, gratuities and other benefits.

He said the contractors were doing the same work as permanent Chevron staff who qualified for pension and other benefits adding: "We want the same for the contract workers."

Ugbi said NUPENG at the national level would join any strike launched by the Warri chapter.
CNL said it was engaging with all parties to resolve the issues through dialogue and respect for rule of law.

A Chevron spokesman in Nigeria contacted by Dow Jones declined to comment further.

(CNNMoney.com)

Wednesday, September 24, 2008

MEND Decries Government Attacks

Nigeria's main oil militant group has accused the army of launching air attacks on its allies' camps.

The Movement for the Emancipation of the Niger Delta (Mend) declared a unilateral ceasefire three days ago.

A Nigerian army spokesman told the BBC that he was unaware of any air strikes on Tuesday.
Mend said it would not be drawn by military tactics into jeopardising the peace process and would continue observing its ceasefire.

Groups such as Mend claim to be fighting for greater control over oil wealth in the impoverished Niger Delta, but they are accused of making money from criminal rackets and trade in stolen oil.

Threat to end truce

Mend said camps belonging to the Niger Delta Patriotic Force and the Niger Delta Vigilante had been targeted in the attacks.

Mend will not play into the hands of the military by retaliating.

Militant statement

Earlier in the month, the militants had declared "war" on Nigeria's oil industry after a fierce military raid on one of their bases.

Mend declared a ceasefire after appeals from local leaders, but it warned it would end the truce if attacked by the army again.

"Mend will not play into the hands of the military by retaliating and putting the peace process in jeopardy at this time," the group said in an e-mailed statement, Reuters news agency reports.
Recent violence has been the worst in two years and on Saturday oil giant Shell was forced to declare a "force majeure" - which frees it from contractual obligations - on crude oil shipments from its Niger Delta facilities.

Nigeria's oil production has been cut by 20% because of unrest in the region over the past few years.

When President Umaru Yar'Adua came to power last year he promised to tackle the problems of the Niger Delta.

Recently, his government announced that a new ministry would be formed to deal with the crisis.

A Niger Delta minister is expected to be appointed this week when the president unveils his new cabinet.

(BBC)

Andrew Berends Update

For an update on Andrew Berends, the independent film producer arrested in Nigeria earlier this month, check out http://www.thefilmpanelnotetaker.com/2008/09/latest-update-from-andrew-berends.html

Suspected Militants Arrested at PH

The Joint Task Force (JTF) in Rivers State has arrested 219 suspected militants during an early morning raid on notorious water front settlements used by militants as hide-outs in Port-Harcourt, the state capital.

Brig. Gen. Bello Sarkin Yaki, the JTF commander in Rivers State disclosed this yesterday, during an interactive session with journalists. The arrests are coming on the heels of the unilateral ceasefire declared by militants on Sunday, in the state after a week of gun fights between the military and militants during which the military commander confirmed seven militants were
killed.

He said the suspected militants were arrested at Abonema, Diobu, UTC, Njemanze, Afikpo, Nnaka, Timber Market and Ekuele water fronts in Port-Harcourt, adding that the dawn raid was carried out based on intelligence reports available to the special military task force. Bello said the suspects, who were arrested in what he described as known "bad spots" have been handed over to the police for prosecution.

Our correspondent reports that the pre-emptive move by the military task force is to thwart attempts by militants, alleged to be re-grouping in various parts of Port-Harcourt, preparatory to unleashing a reign of violence and terror on innocent citizens, having been dislodged from the creeks by the military.

While reinstating the preparedness of the JTF to continue its clamp down on known bases and other spots used by militants to perpetuate their activities, he assured that the military task force is committed to restoring law and order to Rivers State.

The JTF commander said 99.9 per cent of the camps operated by militants in the state have been identified by the special military unit, saying, "We know where they are and they are at our finger tips".

On the truce declared by the militants, Brig. Gen. Bello said while the military top brass in the country welcome the development, the ceasefire, he however explained, would not prevent the JTF from discharging its responsibility of maintaining security in all parts of the state, whether on land or water.

He, therefore, advised the militants to go beyond the ceasefire and lay down their arms and explore peaceful alternatives to channel their demands to the Federal Government. Bello dismissed insinuations that the military killed civilians and attacked civilian habitations during the clashes with militants in the state, adding that the JTF has rules of engagement and a code of conduct that guides its operations.

(AllAfrica)

Tuesday, September 23, 2008

Armed Conflict Affects Medical Care

Medical care has taken a continued dip in the Niger Delta in over two years of armed conflicts orchestrated by militancy, kidnappings and oil sabotage, said National Association of Resident Doctors (NARD).

The NARD, rising from its annual scientific conference and general meeting in Port Harcourt, announced there was a significant drop in medical care in the region "because of the increased armed conflicts within the region."

NARD national president, Owhondah Golden, said the relevant health care indices such as infant and maternal mortality rates had experienced a continued upward movement in the region, reaching an alarming rate, saying oil exploration in the region, spanning five decades, had shored up several diseases among the region’s people. Okongwu Chinedu, secretary general of the group, said noted that "the disease burden in the region has been on the increase due to pollution of its environment, ongoing oil exploration and inadequate health care delivery system in the area."

The doctors are appealing fervently to the Federal Government and governments of the region, to act fast in checking the conflicts, that have ultimately caused medical personnel to generally shun administering drugs and health care to those who need attention in the area. The doctors have therefore pledged that they "would pursue rural outreach health programme to assist in realising the Millennium Development Goals (MDGs), in collaboration with the local governments of the country.

A recent survey by United Nations Human Development index said over 70 percent of the population of the Niger Delta live below the poverty line, less than $1 a day.
The region, which is the third largest wetland in the world, has a steadily growing population, now put at over 40 million people as of 2006, accounting for more than 23 percent of Nigeria’s population of over 140 million.

(Business Day)

Army Vows to Continue Fight in Delta

Nigeria's army said on Monday it would continue to fight criminal gangs in the oil-producing Niger Delta, underlining the fragility of a ceasefire declared by the region's main militant group.

The Movement for the Emancipation of the Niger Delta (MEND) declared a temporary ceasefire on Sunday after a week of attacks on oil platforms, pipelines, flow stations and gas plants in the heartland of Africa's biggest oil and gas industry.

The six days of violence cut Nigeria's oil output by at least 150,000 barrels per day and forced Royal Dutch Shell to warn it may not be able to meet contractual obligations on shipments of crude from the country.

The army welcomed the ceasefire announcement but said that its strategy of fighting a network of criminal gangs involved in crude oil theft and kidnappings for ransom in the Niger Delta remained unchanged.

"We are not at war, so the issue of a ceasefire does not arise," said Brigadier-General Mohammed Yusuf, spokesman for Nigeria's defence headquarters.

"If the restive youths are actually ready to lay down their arms, then we will change our tactics. If there is no crime, then we will change our tactics. All we want is peace for the development of the area," he said.

Security experts say a loose coalition of various armed groups operate under the MEND franchise in the anarchic delta, where foreign oil firms including Shell, Chevron, Total and Agip have interests.

MEND launched what it described as an "oil war" in the delta, a vast network of mangrove creeks in southern Nigeria, just over a week ago in response to what it said were unprovoked air and sea attacks by the security forces on one of its bases.

It warned in Sunday's ceasefire declaration, announced after a plea by elders, that it would resume its campaign of sabotage against the oil industry if it came under attack again.
Ateke Tom, one militia leader whose group claimed attacks on at least two oil flow stations during last week's strikes, warned that the ceasefire could be lifted at any time.

"This will depend on the military and the government," he told Reuters by telephone from the creeks.

Successive Nigerian leaders have pledged to pacify the Niger Delta, where resentment against the oil industry runs high among impoverished villagers but where criminal gangs also grow rich from a trade in stolen crude and kidnappings for ransom.

President Umaru Yar'Adua this month created a Ministry for the Niger Delta meant to address the instability by developing the region and "empowering" its frustrated youths.

Vice-President Goodluck Jonathan, who is from the delta, set up a new panel to look at how to bring about lasting peace, but it is charged with reviewing all previous reports on the problem since 1958 and has been dismissed by the militants as the latest in a string of endless committees and proposals.

(Reuters)

Hostages Reportedly Released

Two South Africans held hostage by Nigeria's main militant group for ten days have been freed, SA officials confirmed.

Captives, Dan Laarman and Robert Berrie with three other international oil workers, including two Britons and one Ukrainian were taken hostage on 9 September, when their vessel was captured by unknown gunmen.

Movement for the Emancipation of the Niger Delta (MEND) said it handed over the two to government secret service agents and expected them to be presented to South African government officials in Port Harcourt."Duo was handed over to government secret service officials at 11 pm on Thursday night, who will in turn hand them over to representatives of South African high commission," said Jomo Gbomo a spokesperson MEND.

Mr Laarman was in Nigeria on a month-long contract with Hydrodive Nigeria to work on Chevron oil rigs.Release of two south Africans was confirmed by South African high commissioner to Nigeria, Mr Stix Sifingo, said Department of Foreign Affairs spokesperson Ronnie Mamoepa.

Minister of Foreign Affairs, Nkosazana Dlamini-Zuma, expressed appreciation on behalf of her government to Nigerian authorities for helping to bring about a resolution to the matter.Militant groups attack oil installations and kidnap expatriate workers, saying they are fighting for a greater share of profits from oil exploitation for the poor.Mr Laarman's parents, Will and Ingrid, said on Friday when they received the news from their Cosmos home on Hartbeespoort Dam near Pretoria they were overjoyed.

"When I heard Dan's voice over the phone on Friday afternoon, it felt as if a weight had been lifted from my shoulders. It was a very emotional experience for me," Ingrid said.

Meanwhile MEND said it rescued 27 hostages from group that had been kidnapped but would hold on to 25 remaining hostages, until Henry Okah who is the leader and was released from prison.

However two South Africans were released because Mr Okah's wife, who lives in South Africa, said South African government treated her and her children well.Last month two German hostages employed by a local unit of Manheim based construction company Bilfinger Berger were also set free by militants group after they were abducted by kidnappers.

(Afrol News)

Monday, September 22, 2008

Bloody Week in the Niger Delta

Even by the usual violent standards of Nigeria's conflict-ridden, oil-rich southern Niger Delta region, it has been a bloody seven days, with dozens of civilian casualties and many more wounded or displaced, according to local observers, in clashes in Rivers state between the military and rebel fighters.

The clashes - reportedly the heaviest in two years in the region - were sparked on 13 September when government security forces allegedly razed the villages of Soku, Kula, and Tombia, in Rivers state while looking for Farah Dagogo, a member of rebel group Movement for the Emancipation of the Niger Delta (MEND).

Civilians caught in crossfire

"I got distress calls from the affected areas saying two of the villages had been razed to the ground, and there was an urgent need for medical teams to go there, but it was not possible for us to go." said Chika Onah with the Nigerian Red Cross (NRC) in Port Harcourt.

Ongoing insecurity has cut off access to parts of Rivers state, making it hard for disaster workers to count how many of the estimated 20,000 inhabitants in the three towns have fled, according to NRC.

Nevertheless, Onah told IRIN civilian casualties are high. "There is no way the civilian population will not suffer in this kind of attack."

Local human rights workers told IRIN they were caught in helicopter and boat gunfire. Sofiri Joad Peterside, a human rights campaigner in the Delta told IRIN, "These were aerial strikes without clear targets. What we are calling for right now is an independent assessor to determine the extent of civilian vulnerability to all these strikes."

He said the violence hit civilians directly. "The centre of the violence was full of civilians. We live in riverine areas and in every riverine area, you have a forest where people go to pick seafood, and you have a community."

But Nigerian army spokesman, Emeka Onwuamaegbu, said the military did not carry out a full-scale offensive. "We are applying minimum force in tackling the situation...we cannot go all out to kill our own people. Can we?"

Surge in violence

On 14 September, MEND declared war against foreign-owned oil companies working in the Delta, pledging to destroy oil pipelines and flow stations, and warning companies to evacuate their staff and stop pumping. MEND claims five attacks since its oil war threat.

Rebels have escalated attacks in recent months against oil production spots, according to locals who do not want to reveal their identities because of the region's volatility.

A government effort to reign in oil smuggling by shutting down 200 illegal oil refineries in the past two months has sparked more fighting, according to the governmental Joint Military Task Force.

The Niger Delta, 70,000 kilometres of mostly wetlands, is home to some 20 million people who sit atop more than 30 billion barrels of top grade crude oil, according to the Nigerian National Petroleum Corporation.

The region's oil production has slumped after periodic attacks by local rebels who say criminal gangs and government military forces are siphoning and smuggling oil wealth, leaving behind polluted, malaria-infested, lawless marshlands that have seen little return from oil revenues.

'If you drink our water, you'll get sick'

Oil revenue from the Delta will amount to US$66 billion in 2008, according to an August 2008 report by the UK-based Centre for Global Energy Studies, but Delta residents say they see little of this money invested in the delta communities surrounding the oil fields.

Rebel leader Tom Polo in Wari, in western Delta, told IRIN, "We are suffering in the Niger Delta. If you drink our water, you'll get sick. They [the government] are not doing anything for us. Every day they say oil prices have gone up, but we don't see any tangible benefits from it."

He said the government has not given back to local communities. "If you go to other countries that are rich in oil, they build first-class universities in oil-producing communities, but here there is nothing like that."

Government spokesman Olusegun Adeniyi pledges more development, but says security must come first. "The government takes the Niger Delta very seriously. It is one of the seven key priorities of this administration...we are doing everything possible to improve living conditions in the Delta, but the security forces will continue to check the excesses of all those seeking to exploit the situation to make money through criminal tendencies."

Red Cross worker Onah says spiralling criminality is hampering efforts to protect civilians. "The issue in the Niger Delta has now gone beyond the struggle for a greater share of the region's resources. If they [criminal gangs masquerading as militants] can kidnap a one-year old baby or a sixty-year old grandmother, organisations like ours that want to help have to be very, very careful."

Government tries to quell violence

On 10 September 2008, the Nigerian cabinet appointed a new ministry for the region.
Presidential spokesman, Olusegun Adeniyi, announced the ministry's plans to "tackle the challenges of infrastructural development, environmental protection and youth empowerment in the region. We believe this is an important step in building confidence about this government's plans for the Niger Delta."

In 2000, the government set up a similar Niger Delta Development Commission to relieve poverty in the region, hoping this would end unrest. But the commission lacked funding and astute management, according to most analysts.

Tony Uranta, executive secretary of the non-governmental United Niger Delta Energy Development and Security Strategy, says the government needs to honour its promises if fighting is going to end- definitively.

Coming out of a meeting with President Umaru Yar'Adua on 19 September, he told IRIN, "It is a mistake to approach the Delta problem as a security problem rather than a development or justice problem. There is a bit of sincerity [from the government] beginning to show but it is still early. Once we see this sincerity in action...there will be changes for the better in the region."

As the two sides wrangle over oil wealth distribution, Samuel Atori, a Delta native and founder of the Abuja-based Izon Prayer Network, concluded, "When two elephants wrestle, the grass suffers."

(VOA)

Sunday, September 21, 2008

MEND Declares Cease Fire

Nigeria's main militant group has declared a cease-fire in the southern oil region after a week of stepped-up attacks on the military and oil infrastructure.

The Movement for the Emancipation of the Niger Delta says it will cease hostilities immediately after appeals from elders and politicians in the region where fighting has flared over the past week.

The group said Sunday in a statement it would launch another spate of reprisal attacks in the event of another military raid on one of the group's base camps. A military operation on Sept. 14 prompted the latest surge in violence.

(AP)

Nigeria's main militant group began a unilateral ceasefire on Sunday after a week of clashes with the military and attacks on oil installations which have cut output in Africa's top producer.

The Movement for the Emancipation of the Niger Delta (MEND) launched strikes against pipelines, flow stations and other oil and gas facilities last Sunday in response to what it said were ground and air strikes by the military against one of its bases.

"We decided to 'stop outside Baghdad' even at a time of victory over the military and utter helplessness of the oil companies," the group said in an e-mailed statement.

"Effective 0100 hours (0000 GMT) September 21, exactly one week after we launched our reprisal, MEND will begin a unilateral ceasefire till further notice."

Nigerian government officials have said production has fallen by 150,000 barrels per day (bpd) over the past week, and estimate the country's current output at 1.95 million bpd.

MEND said it had taken the decision after a plea by elders but warned it would restart its campaign if it came under attack from the security forces. It also warned that other groups aligned with it may not respect the ceasefire.

A spokesman for the joint military taskforce (JTF) which polices the Niger Delta cautiously welcomed MEND's announcement but said the group must demonstrate it could keep its word.

"We will continue to carefully and firmly monitor the situation, and exercise some level of restraint until their declaration is seen to have been actualised," Lieutenant-Colonel Sagir Musa told Reuters.

"We are hoping it will not be another tactical deception which we have already prepared to contend," he said.

MEND has announced ceasefires in the past but subsequently relaunched attacks, claiming provocation by the security forces or by the government.

PRODUCTION IMPACT

MEND has carried out at least six attacks in as many days over the past week, its most intense campaign for years against the world's eighth biggest oil exporter.
Royal Dutch Shell, the company hardest hit by the violence, declared a force majeure on shipments of Bonny Light, a type of crude oil, effective from Friday. Force majeure is a contractual clause invoked by suppliers when they cannot meet their obligations due to events beyond their control.

Such intensity of attacks across the eastern Niger Delta, a vast network of mangrove creeks, has made assessing the impact difficult as engineers scramble to investigate exactly how much production has been hit in each location.

Shell -- which operates onshore in Nigeria in a joint venture with state run oil firm NNPC -- has given no figures.

Oil workers' union PENGASSAN accused the government of a "lacklustre" approach to reaching a permanent ceasefire in the region and warned that Angola -- which vies with Nigeria for the position of Africa's top producer -- would soon eclipse it.

"Because of the protracted crisis ... Angola has become the alternative haven of oil investors," it said in a statement.

The militants say they want greater development and a better living environment after decades of neglect in the delta. But the unrest is fuelled by a lucrative trade in stolen oil worth millions of dollars a day.

Security experts say the region will never be stable unless an alternative source of income can be found for the gunmen, businessmen, politicians and international shippers all taking their slice of the illegal profits.

(Reuters)

Saturday, September 20, 2008

Chief of Defense Staff not Intimidated

The Nigerian Armed Forces will not be intimidated by militants operating in the Niger Delta to abdicate its responsibility to defend the country, the Chief of Defence Staff (CDS), Air Chief Marshall Paul Dike, has said.

Dike said the military was committed to its constitutional duty of defending the territorial integrity of the country, particularly in the Niger Delta, "and nobody can intimidate the military forces into abdicating that responsibility."

The CDS made the remarks yesterday while on a working visit to the headquarters of the Joint (military) Task Force (JTF) in Warri, Delta State.

He was accompanied on the visit by military top brass which included the Chief of Army Staff, Lt-Gen. Adbulra-hman Bello Danbazau.

Also yesterday, former Delta State Governor James Ibori sued for peace over the escalation of hostilities in the Niger Delta

He said: "If there is a season for everything under the sun as the Bible says, there being a time for war and a time for peace, then this is the time for cessation of hostilities in the entire Niger Delta."

Militants operating in the Niger Delta have declared an all out war, attacking and destroying oil facilities.

In the offensive launched last weekend, two flow stations in Rivers State believed to be operated by Shell Petroleum Development Company (SPDC) and Agip were attacked, leaving the militants and men of the JTF to trade accusations over the attacks.

The attacks on the oil facilities, which have allegedly resulted in more oil shut-ins were carried out as Dike visited military installations in Rivers State to assess the security situation.

Dike, who reaffirmed the position of the armed forces, however, admonished all military personnel to adhere to their professional disciplinary norms in order to effectively deliver on their constitutional obligation.

In a subtle but firm response to the reported threat of "full-scale war" on the country's security personnel in the area by militants, the CDS stressed that the military would continue to work for the restoration of peace in the area.

He also charged the officers and men to respect the people especially the civilian population in their area of national service, but avoid any act that could tarnish the image of the armed forces.

He, however, expressed satisfaction with the level of performance by the JTF personnel, saying the on-the-spot assessment of the troops' battle-readiness was the primary reason for his visit.

In his statement last night, Ibori said: "Having heard the anguished cry of the people of the South-South, President Umaru Yar'Adua is determined to end the suffering of the people, and has therefore approved a large scale intervention in the form of the Niger Delta Ministry to reverse the decades old under-development which the area has suffered.

"So, what is called for now is discussion over the activities and funding of the ministry and how best to make it meet the aspirations of the people. Owing to this, I call on all persons of goodwill to join in this peace effort. Hostilities must cease to give the development process the Federal Government has put in place now the chance to succeed.

"War is like malignant cancer; it usually spreads uncontrollably to other areas. Therefore both sides must listen to the voice of wisdom and stop the conflagration - now."

Ibori called on the angry youths of the Niger Delta to have faith in the President and his new initiative.

According to him, "The Niger Delta and Nigeria need their energy re-channelled into really productive ventures. The educated among them should be encouraged to contribute their talents to the needed battle of speeding Nigeria and Africa on the part of swift development and global respect, and themselves towards personal fulfilment and glory. "The uneducated must face intellectual and skill acquisition to enable them compete in the national and global space.

"Fortunately, the focus of the new ministry is two-pronged. While one corrects the abysmal lack of infrastructure in the area, the other faces the task of upgrading the intellectual and talent pool of the area."

According to Ibori, the youths of the area must take advantage of this by ending the hostilities; emerge from their camps and exploit the opportunities that now beckon.

To the militants, he said: "You have made your point. The whole world now knows that your grievances are genuine, and for the first time, the Federal Government is truly addressing them.
In every journey, there is always a place to stop. Your predecessor in arms, the late Major Isaac Adaka Boro realised this, came out from the bush, and reintegrated himself into the society - after leading the first Niger Delta uprising in the 1960s. You too must do like-wise."

In Port Harcourt yesterday, Dike also expressed satisfaction with the performance of JTF, though he said there might be some areas needing improvements.

The CDS thanked Rivers State Governor Rotimi Amaechi for providing a conducive environment for their men to operate in addition to helping out with some logistics.

He called for further cooperation between the state and the armed forces, pointing out that such cooperation had existed right from the time of the civil war.

Responding, Amaechi pleaded with Dike to do everything possible to improve on the present security situation in the state.

He regretted that those he called criminals masquerading as freedom fighters had unleashed terror on the state, but expressed happiness that JTF was working to restore normalcy.

In Bayelsa, the state Governor, Chief Timipre Sylva, asked the Federal Government to urgently consider the establishment of a military command in the state.

Sylva made the call when Dike and Dambazau paid him a courtesy visit at the Government House, Yenagoa.

He said the call became imperative due to the strategic position of Bayelsa as a border state and one of the highest producers of oil, the mainstay of the nation's economy.

(allAfrica.com)

Shell Declares Second Force Majeure

Royal Dutch Shell said on Saturday it had declared a second force majeure on crude oil shipments from Nigeria following militant attacks in recent days on its facilities in the Niger Delta.

Shell last week extended a force majeure, which frees it from contractual obligations, on Bonny oil exports from Nigeria following a militant attack in late July.

It said it had declared the second force majeure on Bonny Light shipments on Friday, following further attacks by militants this week.

MEND Continues Assaults on Pipelines

Nigerian militants said on Saturday they had destroyed another major oil pipeline in the Niger Delta after a week of the most intense attacks against Africa's biggest oil and gas industry for years.

The Movement for the Emancipation of the Niger Delta (MEND) said it had attacked a pipeline operated by Royal Dutch Shell at Buguma Front in Rivers state late on Friday and warned its campaign was not over.

A Shell spokeswoman in Nigeria said the company was investigating the claim, but gave no further details.

The Anglo-Dutch giant, the company hardest hit by the violence, declared a second force majeure on Bonny Light oil shipments on Friday following the week's unrest but gave no details on production.

"MEND will continue to nibble every day at the oil infrastructure in Nigeria until the oil exports reach zero," the group said in an e-mailed statement.

MEND fighters have hit pipelines, flow stations and oil and gas facilities in the Niger Delta every day since last Sunday, when the group declared an "oil war" in response to what it said were military ground and air strikes.

Shell operates onshore in Nigeria through its SPDC joint venture, of which it holds 30 percent while state oil firm NNPC holds 55 percent. Local subsidiaries of France's Total and Italy's Agip hold the rest.

Shell had already been forced to extend a force majeure on Nigerian Bonny Light exports, which frees it from contractual obligations, following an attack on a major pipeline in July.

Such intensity of attacks across the eastern Niger Delta, a vast network of mangrove creeks, makes assessing the impact difficult as engineers scramble to investigate exactly how much production has been hit in each location.

Nigerian government officials have said production has fallen by 150,000 barrels per day (bpd) over the past week, and estimate the country's current output at 1.95 million bpd.

INTENSE AND SUSTAINED

The attacks this week have largely been limited to Rivers state in the eastern Niger Delta but MEND has warned it may extend its campaign to other areas on- and off-shore.

The violence has been the most intense and sustained since MEND first launched its campaign of sabotage in early 2006, and has included relatively rare direct confrontation with the army.

The world oil market, which has largely focused on the fallout from the credit crisis, has found some support from the situation. Prices traded above $100 on Friday.

MEND said it had launched this week's campaign -- an operation it calls "Hurricane Barbarossa" -- in response to air and naval attacks on one of its bases in Rivers state.

"When (Rivers state governor Rotimi) Amaechi took over, the government just said that they must kill me and my boys," one militant leader, Ateke Tom, told Reuters television this week.

"That is why we are fighting back," he said, surrounded by heavily armed fighters.

The militants want greater development and a better living environment after decades of neglect in the delta, where impoverished villagers live among polluted land and water.

The unrest is fuelled by a lucrative trade in stolen oil worth millions of dollars a day.

Security experts say the region will never be stable unless an alternative source of income can be found for the gunmen, businessmen, politicians and international shippers all taking their slice of the illegal profits.

(Reuters)

Friday, September 19, 2008

MEND Claims More Attacks Against Shell

The Movement for the Emancipation of the Niger Delta (MEND) on Thursday launched a new attack on a Shell Development Company pipeline in Rivers state of Nigeria.

In the statement sent via e-mail, the most prominent rebel group in Nigeria's oil-rich Niger Delta region said its members had destroyed a major pipeline belonging to Shell Development Company at the Elem- Kalabari Cawthorne Channel axis in the southeastern state of Rivers.

SAD WEEK FOR OIL FIRMS

Besides the new attack, MEND, who has been in intense fighting with Nigerian government forces since Sept. 13, had allegedly destroyed three more oil pipelines in Rivers state.

Meanwhile, several oil flow stations and gas plants have also been blown up in Rivers state since last Saturday.

The rebel group has ordered oil companies to evacuate their workers and foreign vessels to leave ports in Nigeria's oil region to avoid militant attacks, warning that it will extend the "oil war" to neighboring states in the Niger Delta region.

The Shell Petroleum Development Company (SPDC) has suffered huge losses. Several employees were killed in the attacks.

"Regrettably, a community station guard was killed during the incident... Four other people are being treated for injuries sustained during the incident at the Shell hospital in Port Harcourt," said a SPDC spokesperson in an e-mail when the first attack on Shell's Alakiri flow station, gas plant and field logistics base was reported on Sept. 15.

"SPDC is aware of the difficulty the security situation places on staff, and continues to monitor developments," the spokesperson said.

It was apparently just the beginning of the ongoing battle, and no one can tell when it will end.
Security sources said Nigerian forces need to further prove their capability until attacks on oil facilities in the region were forestalled.

OIL PRODUCTION CRIPPLED

On Sept. 10, Nigerian President Yar'Adua started to reshuffle his government and created a new Ministry of Niger Delta, vowing to promote development and peace in the country's oil-rich area.

But his efforts have apparently been crippled by the fresh fighting between government forces and the rebel group in the region, so has been oil production, the nation's cash cow.

The rampant attacks on Nigeria's oil-producing Niger Delta region have long been a big headache for the Nigerian government.

Since the beginning of 2006, militant groups emerged in the Niger Delta region, fighting for more local control of the region's natural resources, especially oil, through kidnapping oil workers and attacks on oil facilities.

More than 200 foreigners have been kidnapped and a string of attacks on oil pipelines, wells and terminals have been registered by now, leading to a drop of about 25 percent oil production compared with the country's peak output of 2.6 million barrels per day.

According to reports from the Associated Press, a spokesman for Nigerian National Petroleum Corporation (NNPC), Nigeria's state oil company, said Wednesday that militant attacks are now cutting the country's daily oil production by about 1 million barrels a day, putting the country's daily output at around 1.5 million barrels per day, a total loss of 40 percent since the militant campaign began in 2005.

As more than 80 percent of the country's revenue relies on crude oil sales, the oil production shut-in could be a blow big enough to undermine its ambition to become the world's top 20 economies by 2020.

It is difficult to figure out what repercussions the dramatic drop in oil production of the world's 8th largest oil exporter would have in other parts of the world, which is struggling in the face of a new bout of financial turmoil in recent days.

(China News Agency)

Detained Journalists Released

Nigerian security agents have released three reporters arrested over an erroneous report claiming the president would step down on health grounds.

The journalists said they were freed late Thursday. They include Channels news employee Bashir Adigun, who also works for The Associated Press in the Nigerian capital, Abuja. Channels Television — a major private broadcaster shut down by security officials after the incident — remained off-air.

Channels and other media briefly reported Tuesday that President Umaru Yar'Adua, who suffers a kidney ailment, could shortly leave office. They cited a report by Nigeria's official news agency.

But top government officials said the report was a hoax, claiming no such story had ever been sent to subscribers, and quickly disavowed the information.

(AP)

Thursday, September 18, 2008

Oil War Continues

Nigerian militants threatened on Wednesday to broaden their "oil war" to offshore oilfields and announced attacks on a crude oil pipeline in the Niger Delta and another Shell-operated facility.


The Movement for the Emancipation of the Niger Delta (MEND), responsible for attacks that have cut a fifth of OPEC member Nigeria's oil output, said it would launch attacks outside Rivers state for the first time since clashes began on Saturday.


Oil traders on Wednesday began to take notice of the rise in violence and that helped push prices above $94 a barrel in early trading. The market has fallen sharply this week on the impact of the credit crisis on the global economy.



The heaviest fighting between militants and security forces in more than two years has spread to about 10 villages in Rivers state, home to oil city Port Harcourt. Some private security sources estimate dozens have died.


"After Rivers, the hurricane will be heading to the neighbouring states in the Niger Delta," MEND said in an e-mailed statement.


Experts believe the clashes could continue for weeks as the military tries to capture or kill top militant leaders and regain control of the region's oil resources.


"The fight is over control of oil resources and the right to tap those resources," said Antony Goldman, an analyst at London-based risk consultancy PM Consulting.


Militants have bombed pipelines, platforms, gas plants and oilfields, halting up to 150,000 barrels per day (bpd) of oil production in the past five days, said an official with state oil firm NNPC.


The world's eighth largest oil exporter is currently pumping around 1.95 million bpd.
MEND, which says it is fighting for more local control of the impoverished region's oil wealth, attacked Shell's Orubiri flow station and a crude oil pipeline at Rumuekpe in Rivers state late Tuesday and early Wednesday.


"It is feared the (Orubiri) facility may have caught fire due to intense, sporadic gunshots and massive dynamite and bomb explosions," said Lieutenant Colonel Sagir Musa, spokesman for the military task force in Rivers state.


Musa said no soldiers were killed in the attack, which involved an assault by eight gunboats.
Militants said their next targets would be major offshore oilfields.


"Soldiers and oil workers are advised to abandon all oil facilities including the offshore rigs of Bonga and Agbami as we want to minimise casualties," MEND said.


MEND launched its most daring strike in June against Shell's $3.6 billion Bonga oilfield, which lies some 120 kilometres from the coast, forcing the company to shut down the 220,000 bpd operation for several days.


MEND's other target, Chevron's Agbami oilfield, is Nigeria's newest oilfield. The facility, which started production in late July, is expected to pump about 100,000 bpd by February.
Chevron and Shell officials said they did not discuss their security plans.


MEND said it was still holding 27 oil workers captive as leverage for the release of suspected militant leader Henry Okah, who is in jail for gun-running and treason.


A Nigeria military spokesman said late on Tuesday two South African hostages had been released, but MEND denied this.


MEND said on Monday it would release the pair after a personal appeal from Okah's wife.



(Reuters)