US embassy cable - 04LAGOS1982

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