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Cablegate: Youths Continue to Hold Agip Workers; Shell Moves

VZCZCXRO4301
RR RUEHDE RUEHMA RUEHPA
DE RUEHOS #1043 2091603
ZNR UUUUU ZZH
R 281603Z JUL 06
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC 7706
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHHH/OPEC COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 7652
RUEHLO/AMEMBASSY LONDON 0675
RULSDMK/DEPT OF TRANSPORTATION WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAHLC/HOMELAND SECURITY CENTER WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUFOADA/JAC MOLESWORTH AFB UK
RUEATRS/DEPT OF TREASURY WASHDC
RUEKJCS/SECDEF WASHINGTON DC

UNCLAS LAGOS 001043

SIPDIS

SENSITIVE BUT UNCLASSIFIED - HANDLE ACCORDINGLY
SIPDIS

STATE PASS DOE FOR GPERSON AND CGAY
STATE PASS TREASURY FOR ASEVERENS AND SRENENDER
STATE PASS DOC FOR PHUPER
STATE PASS TRANSPORTATION FOR MARAD
STATE PASS OPIC FOR CDUFFY
STATE PASS TDA FOR BTERNET
STATE PASS EXIM FOR JRICHTER
STATE PASS USTR FOR ASST USTR SLISER
STATE PASS USAID FOR GWEYNAND AND SLAWAETZ

E.O. 12958: N/A
TAGS: EPET PGOV ASEC PTER PINR NI
SUBJECT: YOUTHS CONTINUE TO HOLD AGIP WORKERS; SHELL MOVES
TO CONTAIN OIL SPILL IN RIVERS

REF: LAGOS 1029

1. (SBU) ConocoPhillips management, joint venture partner
for AGIP, confirmed that local youths continued to hold
approximately forty AGIP employees at an AGIP flow station in
Bayelsa State (reftel). The AGIP employees have now been
confined to the flow station for three days. ConocoPhillips
reports no casualties. The AGIP Deputy Managing Director
told us two negotiators from Bayelsa State and one from AGIP
were negotiating with the community. He said part of the
community's grievances stem from the Nigerian Navy's seizure
of two boats from the village. Local press accounts indicate
the community is dis-satisfied with AGIP's implementation of
community development activities under their Memorandum of
Understanding (MOU).

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2. (SBU) Shell executives report the Bille community in
Rivers State initially prevented Shell from accessing the
Nembe Creek pipeline rupture (reftel). Shell now has access
to the area, and crews are working to mitigate the
significant oil spill. Once pollution prevention measures
are in place, Shell will investigate whether the pipeline was
deliberately vandalized or ruptured due to corrosion or other
technical issues.

3. (SBU) Shell confirmed it has declared "force majeure"
for deliveries of Bonny Light crude from their Bonny Island
Export Terminal, saying they may have difficulty meeting some
deliveries from late July through August. With international
markets casting an increasingly worried eye at Nigeria, Shell
emphasized their declaration is merely a precautionary market
warning. A Shell executive told us they will make contracted
deliveries of Bonny Light, but remain uncertain if they will
reach the full quantity for all shipments.

BROWNE

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