Villagers invaded four oil pumping stations in Nigeria`s southern delta region on Wednesday in a dispute with Western companies over contracts and community benefits, authorities said. It was not immediately clear how much oil production was closed as a result of the invasions in Rivers State, but the same four facilities were pumping about 100,000 barrels a day when they were last invaded two years ago.

"Some flow stations were invaded by youths. We understand there are community issues and we expect a quick resolution of these issues with the intervention of the state government," a Shell source said, asking not to be named.

Three of the flow stations -- Ekulama I and II and Belema -- are operated by Royal Dutch Shell while the fourth -- Robertkiri -- is operated by Chevron.

Nigeria, the world`s eighth largest oil exporter, is already losing about 500,000 barrels a day because of militant attacks in the western side of the delta, a vast wetlands region. Executives fear the violence is now spreading east to the swamps of Rivers and Akwa Ibom states.

Seven foreign oil workers were released unharmed on Saturday after 18 days in captivity after an unprecedented raid on a residential compound for expatriate contractors working for US giant Exxon Mobil in Akwa Ibom state. The flow station at Ekulama I, which normally pumps 9,000 barrels a day, was already shut by fighting between militants and troops earlier this month.

A Chevron source said the company closed the Robertkiri facility, which was pumping 15,000 barrels per day, when it became clear the protesters were intent on occupying it. "This is a very unexpected situation. We are fulfilling our aspects of the global memorandum of understanding with the community. We have created jobs," he said.

One community leader who masterminded the 2004 invasion said the latest action was not authorised by the community chiefs and was staged by "youths." A Rivers State spokesman said government officials were trying to resolve the dispute and expected it to end soon.

Violence in the Niger Delta is rooted in poverty, corruption and lawlessness. Many residents of the impoverished region resent the multibillion-dollar oil industry which has damaged their environment, but brought them few benefits. However, the violence has taken on a momentum of its own. Turf wars over control of a lucrative trade in stolen crude, abductions for ransom, sabotage and thuggery fomented for political ends are all part of the equation.

Analysts expect the violence to intensify in the run-up to general elections in April as rival militias stake their claim to the remote region of mangrove swamps.
(By Austin Ekeinde, Planet Ark, 26/10/2006)
http://www.planetark.com/dailynewsstory.cfm/newsid/38672/story.htm