Villagers fled Nigeria's lawless delta amid fears of military reprisals after a wave of attacks on foreign oil companies by ethnic Ijaw militia.
Four non-nationals oil workers were recently kidnapped in the area and at-sea rig on which which an Irishman was working also came under threat from local militants.
The Nigerian army today deployed more troops to key installations and oil companies tightened security around their offices a day after heavily armed men stormed the headquarters of Italian oil firm Agip, killing eight policemen and one civilian, and robbed a bank on the premises.
It was not clear if the attack on Agip was the work of the Movement for the Emancipation of the Niger Delta, whose five-week campaign of sabotage and kidnapping has helped push world oil prices to four-month highs.
The movement today threatened Royal Dutch Shell, saying must pay $1.5 billion (€1.2) billion to delta villages in compensation for decades of oil pollution.
The government has so far shown restraint in dealing with the militants. It has set up a committee to negotiate the release of four foreign oil workers kidnapped on January 11th - an American, Briton, Bulgarian and Honduran - but it appears to be making little progress.
Shell has already withdrawn 500 staff and cut its output by 221,000 barrels a day. Hundreds of contractors have also fled the area as the military deploy extra troops to platforms across the vast region of mangrove swamps and tidal creeks.
Oil unions have threatened to pull out completely from the delta, which produces almost all Nigeria's 2.4 million barrels a day, if security deteriorates further.
"There is palpable fear in the air that another Odi is in the making," said today's ThisDaynewspaper, referring to a 1999 raid when rights groups say troops killed hundreds in the delta village of Odi to avenge the killing of 12 policemen.
The militants said yesterday in statement that they had not started talks for the release of the four hostages who were taken from an offshore oilfield operated by Shell.
"The hostages are in good health ... and are going nowhere for as long as our demands are not met," said the group, seeking the release of two Ijaw leaders and the money from Shell.
"Shell will suffer more damages and losses than it can hope to pay as compensation," said the statement. "Any foreigner who decides to remain in the Niger Delta will have himself only to blame."
The captives will be freed only in return for the release of militia chief Mujahid Dukubo-Asari and former Bayelsa state governor Diepreye Alamieyeseigha, who was impeached for money laundering last month, the group said.