COMMUNITY YOUTHS OCCUPY BAYELSA AGIP FACILITY;

C O N F I D E N T I A L LAGOS 001029 SIPDIS SIPDIS STATE PASS DOE FOR DAS JBRODMAN AND CGAY TREASURY FOR ASEVERENS AND SRENENDER COMMERCE FOR KBURRESS STATE PASS TRANSPORTATION FOR MARAD STATE PASS USAID FOR GWEYNAND AND SLAWAETZ STATE FOR DS/IP/AF, AF/EX, DS/IP/OPO, DS/ICI/PII, DS/DSS/ITA E.O. 12958: DECL: 07/27/2016 TAGS: EPET PGOV ASEC PTER CASC NI SUBJECT: COMMUNITY YOUTHS OCCUPY BAYELSA AGIP FACILITY; NIGERIA DOWN ANOTHER 200,000-PLUS BARRELS Classified By: Consul General Brian L. Browne for Reason 1.4 (D and E). ¶1. (C) The Deputy Managing Director (MD) for AGIP, subsidiary of Italian oil major ENI, confirmed that unidentified youths occupied an AGIP flow station at Ogbainbiri, Bayelsa State on July 25. The remote station is accessible by a 45-minute helicopter flight west from AGIP's main export terminal at Brass. The Deputy MD stated about 40 AGIP Nigerian staff are being held by the youths on site. U.S. oil major ConocoPhillips, an equity partner with AGIP, has no personnel at the station. AGIP has lost communication with the station, and is not able to provide current information on the welfare of the staff. There were no reported casualties. Bayelsa State officials claim the occupation stemmed from a dispute between AGIP and the local community. The state officials are in contact with the youths to determine their grievances. AGIP told us Bayelsa negotiators are expected to meet with the youths later today. News sources report a recent email from the Movement for the Emancipation of the Niger Delta (MEND),threatening oil facilities in the eastern Niger Delta; however, both AGIP and Bayelsa State officials indicated they do not believe MEND is involved in this incident. ¶2. (C) The AGIP Deputy MD confirmed the loss of approximately 35,000 barrels/day as a result of the closure of the flow station. The flow station exports oil via AGIP's Brass Export Terminal, which has a capacity of 200,000 bpd. A Control Risks consultant provided an unconfirmed report that five Naval personnel and an unspecified number of soldiers were kidnapped today at this export facility. ¶3. (C) In an unrelated incident, a Shell production official confirmed the loss of approximately 180,000 bpd production on July 25 due to a pipeline rupture in the Nembe Creek trunk line near Port Harcourt, Rivers State. The official told us local youths have not permitted Shell access to the area. Thus, Shell cannot determine if the damage was due to sabotage or an accident. ¶4. (SBU) Nigeria's production losses over the last two days, combined with the approximately 500,000 bpd in Shell production lost since February, now total over 700,000 bpd, or roughly one-third of Nigeria's OPEC quota. BROWNE