afrol News, 28 September - Turmoil in the Niger Delta, Nigeria's leading oil producing region, is threatening to develop into civil war as militias demanded foreign oil companies cease production. The Nigerian army now says it will strike back on the local militia, which fights for more oil resources for the Ijaw people. World oil prices meanwhile reached record levels.

The Ijaw militia in Nigeria's River State has caused turmoil in the region for more than one month. Its threat of an "all-out war on the Nigerian state" and against foreign oil companies however has caused shocks affecting the entire globe. The militia has given oil companies an ultimatum; cease all production by 1 October or face military attacks.

There are at least three versions to who these Ijaw militiamen represent. According to Nigerian authorities, they are armed bandits that have looted oil installations in the Delta during the last months, selling the stolen oil on black markets. The fighting in the region, according to the government, has mainly been between two rival armed gangs, both trying to control the black market.

The militia, on the other hand, claims to fight for the liberation of the Ijaw people of the Niger delta region. Militia leader Dokubo Asari recently has started giving interviews to the press, demanding "resource control and self-determination" for the Ijaws, which indeed has only seen the dark side of oil production in their homeland. Revenues go directly to the federal government or foreign companies, while most oil workers are foreigners and oil spills have ruined the livelihood of many villagers.

Civil rights groups in River State however claim that the two armed groups operating in the region are the product of the last elections in the state. Rivalling parties had engaged armed groups to intimidate the other party and voters. After the elections, the armed groups turned into gangs that started looting.

The fighting in River State already is said to have cost around 500 lives during the last month, according to Amnesty International. This, according to the human rights groups, also was due to the heavy-handedness of the Nigerian army, which had been given orders to use "maximum force" against the gangs. River State officials deny the high casualties described by Amnesty, however.

Also the oil industry in the Niger Delta has already suffered from the militia's attacks. According to a press statement from the Anglo-Dutch oil company Shell, the region is tense and the movement of employees and supplies has been curtailed. The Santa Barbara flow station, which produces 28,000 barrels per day, has been shut down because the company cannot reach the area to repair a minor damage.

The threat against all oil instalments and the large group of foreigners working at the companies has caused Shell and other operators to boost security. Despite increased security efforts and a assurances by the Nigerian army that the militias will be stopped, the threats created economic waves around the world.

US crude oil futures today punched through the US$ 50 barrel mark "on concerns over possible disruption to oil supplies in Nigeria," according to market analysts. The Nigerian crisis was added to concerns over oil supply from Iraq and Russia. Saudi Arabia's pledge to boost capacity in order to make up some of the shortfall failed to dampen prices.

Yesterday, with oil prices reaching US$ 49 a barrel, several of the world's leading economies immediately started detracting. European, Canadian, Asian and Latin American stock markets fell substantially. If oil prices remain at these levels - the highest in 21 years - a global recession would be the result.

By staff writers

© afrol News

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