Shell Oil installation attacked in southern Nigeria

Armed men have besieged an oil complex in southern Nigerian owned by a subsidiary of Royal Dutch Shell PLC, a local leader said today.

A group of armed men attacked the facility – an operating base that houses staff and stores equipment – sometime overnight and took control of the compound, said Joshua Benemesia, a local chief who has mediated hostage negotiations in Nigeria’s oil-rich delta region.

Benemesia said at least one man was shot in the attack, but there were no immediate reports of deaths.

Scores of oil workers – mostly local Nigerians – typically live in such compounds.

Attacks have become common in the southern river delta of Africa’s largest crude producer.

Assailants have ranged from militants saying they’re fighting for the freedom of their imprisoned leaders and a greater share of oil wealth to criminal gangs looking for a quick ransom from hostages.

Benemesia – head of a government-funded group that is attempting to curb attacks in Nigeria’s Bayelsa state – said he had not seen the assault himself, but had talked to members of his group at the scene.

He said the attackers still controlled the facility as of early this morning. He did not have details on the number of attackers involved.

Attacks on pipelines and oil facilities have cut the West African country’s usual daily output of 2.5 million barrels by about a quarter this year.

Nigeria is the fifth-largest supplier of oil to the United States, and attacks in the Niger river delta have often moved world oil markets.

This latest incident occurred as the oil-exporting cartel OPEC wrapped up a meeting in Nigeria’s far-off capital, Abuja.

Yesterday, the group said it planned to output cut in early 2007, pushing oil prices above €46 a barrel.