DELTA VIOLENCE UPDATE FOR SEPTEMBER 28

C O N F I D E N T I A L SECTION 01 OF 03 LAGOS 001982

SIPDIS

E.O. 12958: DECL: 09/27/2009
TAGS: MOPS CASC EPET AA PGOV NI
SUBJECT: DELTA VIOLENCE UPDATE FOR SEPTEMBER 28

REF: A. LAGOS 1978

B. ABUJA 1656

C. ABUJA 1486

D. LAGOS 1892

E. LAGOS 1820

Classified By: Consul General Brian L. Browne for Reasons 1.5 (B & D)

Summary
--------------


1. (C) GON military efforts (Operation Flush Out 3) to
combat Delta militants continue. Oil companies are monitoring
the situation closely, and are not dismissive of the threats
by Niger Delta People's Volunteer Force (NPDVF) leader
Asari. Beyond Shell's decision to evacuate workers from two
stations last week, most of the major oil companies are not
intending any evacuation or diminution of production.
However, they have instituted a number of precautionary
measures, including requesting personnel to minimize travel.
Shell confirmed the violence has resulted in a small
production loss of about 50,000 barrels/day of the one
million barrels/day it produces. Mission has 437 Amcits
registered as living in the Port Harcourt area, most of whom
work for energy sector companies with which our ACS unit is
keeping close contact.

Security Update
--------------


2. (C) Abuja Pol/Mil officer met Principal Staff Officer
Group Captain Labaran on the Chief of Defense Staff at the
Defense Ministry on September 28. Labaran said the military
in the Delta has been taking orders directly from President
Obasanjo, who telephones them when he is out of town. The
GON effort is called "Operation Flush Out 3" and is limited
to Rivers State. Labaran confirmed that the Army, Navy and
Air Force are involved.


3. (C) Current operations involve helicopter gunships going
down the creeks looking for "rebels," the contact reported,
and the overall purpose of the operation is to re-establish
law and order. Labaran was aware of the human rights angle
(other sources tell us civilians have been hit by the
helicopters),and said it was "a difficult balance" against
the need to restore order. He claimed high morale among the
GON troops engaged, but would not elaborate on their
successes. Labaran advised Pol-Mil Off that expatriates
should exercise caution and avoid unnecessary travel to avoid
being seen as potential hostages by the rebels.

Reports from Major Energy Firms
--------------


4. (SBU) Shell: Shell's Managing Director (MD) confirmed
that the company had evacuated flow stations in Soku and
Ekulama (River State),due to the close proximity of these
facilities to military operations. These evacuations were
"localized" and not a sign that Shell was planning a wider
evacuation. The MD stated that AMCITs were among those
evacuated. He promised to covey exact numbers of AMCITs
tomorrow.


5. (SBU) Shell has seen press reports of Asari threats
against the company, but has not received any threats
directly. Thus far, there have been no signs on the ground
of direct threats to Soku, Ekulama, or other Shell facilities
in the general vicinity. Shell remained fully staffed in
these other facilities. Shell has advised staff in these
outlying facilities not to conduct any riverine travel, which
has been the normal mode of their business transportation in
the area. Evening travel has also been prohibited. For
employees in the city of Port Harcourt, Shell is authorizing
only essential travel around the city. The Shell MD also
confirmed press reports of a small production loss,
approximately 50,000 barrels/day, from the approximately 1
million barrels/day it was producing prior to the latest
violence.


6. (C) AGIP/ENI: Public Affairs spokesperson for AGIP
confirmed that they are taking Asari's threats seriously,
but they have not evacuated any staff. Production in Port
Harcourt has not been affected. They employ a small number
of AMCITs as contractors. An AGIP spokesperson confirmed to
the Consulate General that the firm did not lend their
helicopter for use in a military raid, as rebel leader Asari
claims.


7. (SBU) Chevron/Texaco: Chevron Texaco's Managing
Director for Offshore Operations reported Chevron was
monitoring the situation closely, but had no plans to
evacuate personnel, nor to lower production. He noted
Chevron Texaco received frequent threats, and the company was
accustomed to dealing with these difficulties. Chevron has
two flow stations approximately five miles from where the
military operations took place. There are roughly 120 staff
at the two stations. Half of this number are security
personnel. Of the 120, only a handful are expatriate. He
stated that Chevron was in constant contact with the Nigerian
military. If Chevron found out that the military operations
were enlarging or moving to areas near their flow stations,
Chevron would re-assess the situation.


8. (C) Exxon Mobil: The Acting Managing Director for Exxon
Mobil reported no plans to move or evacuate any personnel.
He confirmed that Exxon Mobil has no production facilities in
the Port Harcourt area. Its Nigerian production is
off-shore. However, its Onne supply base, with over 200
employees, is close to Port Harcourt; Onne employees reside
in Port Harcourt. The company also has a small fabrication
facility in Port Harcourt, with about 40 employees. Of the
roughly 250 employees working in these facilities, only about
20 are expatriates. Of these, half are American. Two weeks
ago, Exxon Mobil increased its security alert from a level
two to three. The company employs a four-tiered system, with
four the highest alert. It imposed a travel ban in the area,
but relaxed the ban last week to allow for essential travel
only. Exxon Mobil does not plan to change its security alert
or travel policy for now. The company plans to issue a
communiqe, to employees telling them to exercise caution due
to the "national holiday." The External Relations Director
for the company told us that Exxon Mobil has an up-to-date
evacuation plan.

Reports from Independents and Oil Service Companies
-------------- --------------


9. (C) Halliburton: Acting Halliburton Security Director
confirmed that all Halliburton employees working with Shell
in the affected areas had been successfully evacuated. Most
were Nigerian personnel. Security Director stated that
Halliburton maintains current evacuation plans. He believes
that Asari does not have more than 2000 men, and that the GON
troops had scored some recent successes, destroying 5 rebel
bases used by Asari.


10. (C) Panalpina: Panalpina Oil and Gas Sales Manager
confirmed that his firm had noted a significant military
presence in Port Harcourt. He explained that his office has
only 8 expatriates in the Port Harcourt office; he is the
only American in Nigeria employed by the firm. In the event
of an evacuation of energy firm personnel, Panalpina
personnel would stay behind to assist with the movements, as
the majors depend on Panalpina transportation assets to move
their personnel.


11. (SBU) Coopers Cameron: Coopers Cameron Manager
explained that all Coopers Cameron facilities in Port
Harcourt are guarded by mobile police. Coopers Cameron staff
in Port Harcourt are all Nigerian, and after efforts to
improve local content, all of their managers in Port Harcourt
are also Nigerian. Coopers Cameron has banned all travel in
and out of Port Harcourt until the present tensions cease.
Echoing similar comments from other contacts, he noted that
while staff felt secure in Port Harcourt itself, movements to
and from the airport were not viewed as secure.

ACS Update
--------------


12. (C) Mission ACS unit confirmed that 437 AMCITs
registered with post live in the Port Harcourt area. The
vast majority work in the energy sector, and have access to
some type of evacuation assistance via their employers.
However, a small number are teachers, missionaries, or in
other professions outside of the energy sector. There are
also a number of dual nationals who usually do not register
with the Consulate. It is difficult to determine the precise
population of this category.

BROWNE