NIGERIA: HOSTAGE-TAKING, SITREP #3

S E C R E T SECTION 01 OF 02 LAGOS 000251

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
LONDON PASS TO AMBASSADOR CAMPBELL

E.O. 12958: DECL: 02/18/2016
TAGS: EPET PGOV ASEC PTER KHLS PINR ETRD CASC NI
SUBJECT: NIGERIA: HOSTAGE-TAKING, SITREP #3

REF: LAGOS 250 AND PREVIOUS

Classified By: Consul General Brian L. Browne for Reasons 1.4 (D & E)

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Summary
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1. (C) MEND released a statement claiming the hostages are
in good health. Willbros has contacted all next-of-kin.
Delta State governor James Ibori has been appointed Chair of
a committee to resolve the hostage crisis. Due to security
concerns, Shell has not been able to fully assess damage to
its Forcados export facility, and it remains closed. Along
with other closures, Shell's daily production has been
reduced by roughly 500,000 bpd. A feeder line to the
Escravos-Lagos gas pipeline was attacked, disrupting gas
deliveries to Nigeria's largest power plant. End summary.

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Hostage Welfare Update
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2. (SBU) Willbros has contacted the next-of-kin for all of
their employees. None of the three AmCits had registered
with the Consulate or signed Privacy Act waivers.


3. (U) In a statement released via to Bloomberg, MEND stated
"the hostages are in good health." The statement also said
the hostages had been "scattered around communities."


4. (C) The Thai Embassy in Dakar, and Egyptian and
Philippine Embassies in Abuja have contacted Embassy Abuja
for information regarding their kidnapped nationals. They
have not requested specific assistance.

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Energy Update: Shell Confirms Loss of 518,000 bpd
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5. (C) Shell has been unable to perform a damage assessment
of the Forcados Terminal, but aerial photos indicate the
damage may not be as extensive as previously thought. A
detailed damage assessment will be done as soon as security
permits, with the next attempt scheduled for tomorrow.
Forcados remains closed as does the "Sea Eagle" FPSO which
produces 115,000 bpd. The "Sea Eagle" was closed as a
precautionary safety move. It has not suffered any damage
nor been subjected to any militant activity. These
shutdowns, compounded by the Cawthorne Channel closure,
reduce Shell's daily production by approximately 500,000 bpd,
or nearly 25 percent of national production. Shell resumes
crisis group meetings tonight with Willbros, USG and HMG
government representatives, and Control Risk Group advisors.
Scotland Yard representatives arrive today and will attend.

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Delta State Hostage Committee Formed
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6. (C) At the behest of President Obasanjo, Delta State
governor James Ibori has been tasked to lead a nine-member
committee to resolve the hostage crises. Ibori has
headquartered the committee in Warri, Delta State. Ibori
told us he has put out feelers to the kidnappers, but there
has been no direct communication yet. Ibori also said
President Obasanjo assured him no military action would be
taken for the time being in order to give Ibori a chance to
negotiate a peaceful resolution.

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Military Activity; JTF Plans Military Build-up
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7. (S/NF) However, in a move the militants will likely see
as aggressive, a senior military official said a planned
buildup of the JTF is to begin soon. This larger force, with
a new commander, will increase GON land, sea, and air patrols
of the area.


8. (C) The Nigerian military has employed four boats out of
Warri to patrol and control the waterways. The boats were
reportedly engaged by the militants, and five militants were
captured.

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Gas Pipeline Attack: Power Production Down 200 MW
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9. (C) Nigerian Gas Company (NGC) executive A.L. Yakubu
confirmed last night's attack on the Escravos-Lagos pipeline.
As a result, Egbin Power Plant, Nigeria's largest, has cut
its production of power. Yakubu reports a feeder line,
rather than a main line, was cut, so gas pressure to Egbin is
reduced. Power production has been reduced from 1250 MW to
1050 MW and may further reduce. NGC hopes to send a repair
crew to begin fixing the gas line tomorrow.

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More Detail on Barge Attack
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10. (C) Chevron security personnel provided more details
about the barge attack and hostage-taking. The Willbros
barge was approached by 6-7 speedboats with occupants waving
white flags, and the barge security contingent allowed the
boats to come closer. When the boats reached the barge the
militants, armed with heavy machine guns and a rocket
propelled grenade, began firing. The forty-five expatriates
onboard tried unsuccessfully to hide in a secured room; the
militants took only nine hostage because their boats would
not hold more. The remaining expatriates were evacuated to
Warri.


11. (C) Secretary of the Bayelsa State Government Dr. Igali
complained to Embassy PolCouns that the Federal government is
to blame for the recent militia attacks. The Nigerian
military attacks on Nkeronkoko were ordered at the highest
levels of the government, despite agreement not to retaliate
against the militants for the last hostage taking, said
Igali. Another source claiming connection with MEND says
more militia attacks are planned.

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Comment
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12. (C) There has not been any reported activity by the
militants or the Nigerian military today. Both are likely
catching their breath, waiting warily to see if the other one
will act. We hope both will remain idle so that the hostage
negotiation will have a chance to occur. However, the stakes
now are higher than during last month's crisis which ended
barely three weeks ago. Intense and perhaps protracted
negotiations lie ahead. End comment.
BROWNE