US embassy cable - 03ABUJA768

UNCLAS ABUJA 000768 
 
SIPDIS 
 
 
E.O. 12958: N/A 
TAGS: CASC, ASEC, EPET, ENRG, ECON, PINS, PGOV, NI 
SUBJECT: NIGERIA: DISGRUNTLED OIL WORKERS HOLD 
17 AMERICAN HOSTAGES 
 
1. Summary: Since April 16, disgruntled Nigerian oil 
service workers have held hostage as many as 97 
expatriates, including 23 U.S.-citizens on four 
offshore oil rigs beyond the eastern Niger Delta. 
Transocean Sedco Forex, a Houston-based, Cayman 
Island-registered oil service company, operates the 
rigs. As of April 29, company officials report 6 U.S. 
citizens were released, leaving 17 on the rigs. Post 
is actively monitoring the situation and encouraging 
the GON and labor organizations to find a negotiated 
solution to the stand-off. End Summary. 
 
 
2. The company's managing director in Nigeria, Ian 
Clarke, told the Ambassador that on April 16, about 
100 disgruntled oil workers took over four oil rigs 
(Sedco 709, Trident 6 & 8 and NG Holme) to protest the 
dismissal of five workers accused of theft. He said a 
total of 372 persons were on the four platforms at the 
time of the incident, including 97 foreign workers. 
Clarke said 23 were U.S. citizens. 
 
 
3. Clarke later told Econoff that as of the evening of 
April 29, his company had negotiated the release of 6 
U.S citizens, leaving 17 on the rigs. Of the 
approximately 272 hostages taken, 32 have been 
released, leaving 240 on the rigs, in addition to the 
100 disgruntled oil workers turned captors. Clarke 
reported that the released hostages are in good health 
and that the situation on the platform was calm. He 
added that the remaining hostages are in no immediate 
danger and have sufficient quantities of food and 
water. 
 
 
4. The disgruntled workers are all member of the 
National Union of Petroleum and Natural Gas Workers 
(NUPENG); however, NUPENG opposes this wildcat 
takeover. Joseph Akinlaja, General Secretary of 
NUPENG, told Poloff on April 28 that the Transocean 
Sedco Forex workers were dismissed a few days before 
the April 16 takeover for theft of company property. 
The company obtained a Federal High Court order 
demanding the accused workers vacate the premises; 
however, co-workers of the employees prevented the 
bailiff from serving the court documents. Akinlaja 
said that shortly thereafter, about 70 coworkers and 
fellow NUPENG members began a solidarity protest in 
support of the dismissed workers and eventually blocked 
the platforms' helicopter landing pads. Akinlaja said 
his office declined a request by the aggrieved workers 
for NUPENG's intervention and emphasized that "NUPENG 
will not support such irresponsible acts by any of its 
members." 
 
 
5. Comment: Transocean Sedco Forex officials continue 
to negotiate with the disgruntled employees turned 
captors; however, the company's position is that 
negotiations should take place in Port Harcourt, not 
on the oil rigs. The employees fear that if they 
abandon their positions they will be fired. 
 
 
6. Labor disputes such as this erupt periodically at 
oil facilities. Usually they are resolved peacefully 
and without GON intervention. At this juncture, the 
hostages appear to be in no imminent danger. This 
takeover, although discomforting, seems no different 
than the others that have ended without incidents of a 
violent nature. In his conversation with the Ambassador, 
Clarke emphasized that no threats of violence had been 
made by the offedning Nigerian employees. There has been 
no destruction of property 
 
 
7. Transocean Sedco Forex Managing Director Ian Clarke 
will meet the Ambassador on April 30 to discuss avenues 
for peaceful resolution of the dispute, including the 
involvement of the Ministry of Labour, National Labour 
Congress (the national labor organization of which 
NUPENG is a member), and NUPENG. It is positive that 
the leadership of NUPENG has disassociated itself from 
what amounts to an illegal strike. Additionally, 
NUPENG leadership may be helpful in talking down the 
local members involved. For now, the GON, including the 
National Security Agency, is also monitoring the situation 
and does not appear ready to become actively involved 
unless requested by Transocean Sedco Forex. End 
Comment. 
JETER