Nigerian militants threaten all-out oil war

Nigerian militants have released six foreign oil workers they deemed “low value”, but held on to two Americans and one Briton and threatened crippling new attacks aimed at cutting off all oil production in Nigeria.

American Macon Hawkins, who turned 69 yesterday, was the first to be released, set free in the presence of foreign journalists visiting the West African nation’s swampy delta region. Militants said in an e-mailed statement afterward that the ageing diabetic was freed “on account of his age and poor health.”

Hours later, he joined five other frazzled-looking former captives – two Egyptians, two Thais and one Filipino – at the offices of James Ibori, governor of the restive southern Delta State.

A militant spokesman confirmed two other Americans and a Briton were still being held. The nine were kidnapped on February 18 from a barge in the southern Niger Delta. The spokesman referred to the freed hostages as “low-value” and said they came fro countries “without interests in the oil industry”.

The militants, who claim to be fighting for a greater share of oil wealth on behalf of an impoverished population, warned more violence was likely to strike Africa’s biggest crude producer.

Nigeria usually exports 2.5 million barrels daily and is the US’ fifth-largest supplier. A spate of militant attacks on pipelines and other oil facilities has already cut oil production by 20%.

“We demand the intervention of a neutral arbiter in the resolution of this conflict and reiterate our objective of totally destroying the ability of the Nigerian government to export crude oil it has stolen from the Niger Delta over the past 50 years,” the militant statement said.

“We will commence with attacks in another area of the Niger Delta with an aim to ensuring the total discontinuation of export of onshore crude oil.”

Meanwhile, while tight markets and global tensions have pushed up prices, the Nigerian president of OPEC said yesterday there is plenty of oil, with the global surplus expected to grow at current production lvels.

The assessment by Nigerian Oil Minister Edmund Daukoru in a media interview provided an indication that the OPEC producers are likely to pull back on production levels when they meet March 8.

The OPEC ministers declined to change their production numbers when they met in January.

“In the second quarter, we forecast an overhang (of supply) of maybe two million barrels a day,” said Daukoru, maintaining there isn’t enough refining capacity to handle that amount of supply.

Daukoru, who is OPEC president this year, declined to speculate what the cartel will do, but said its discussions ”should be against the background of that anticipated overhang” which he suggested could lead to a collapse in oil prices.

He called $60 a barrel for oil a “fair price” and said oil prices should be kept at “an equilibrium with global economic growth.” He cautioned if prices are allowed to edge toward $70 a barrel “everybody gets nervous” about the impact on the global economy.

Daukoru declined to get into reports that Nigeria is seeking help – in the form of military speed boats and other technologies – to protect its oil facilities, especially in the Niger Delta.