Nigerian kidnappers free 2 out of 8 expat hostages

ABUJA, June 4 (Reuters) Kidnappers in Nigeria have freed two British oil workers after two days in captivity and local authorities said they expected the release of four other Britons, one Canadian and one American later today.

The eight men were seized by gunmen from an offshore oil rig in a night-time raid on Friday that raised new security fears after a series of militant attacks earlier this year that have shut down a quarter of oil output from Africa's top producer.

''Two have been released. We are going for the others immediately. We expect them to be free at any moment today,'' said Johnny Iganiwari, information commissioner of Bayelsa state in the southern oil-producing Niger Delta.

The British embassy confirmed two Britons were now free.

''They are in good health. We are working with the Nigerian authorities to ensure the safe release of the others. We don't know the reason for the release,'' an embassy spokesman said.

Police said earlier all eight hostages had been released, causing confusion about what was going on in the remote creeks of Bayelsa, where the eight were being held.

The kidnappers had not listed specific demands but wanted to force the oil companies to negotiate on a range of issues including employment for local people, environmental impact and development projects, sources from the companies involved said.

Abductions are a common tactic by disgruntled groups in the Niger Delta, a vast, impoverished wetland that produces the bulk of Nigeria's 2.4 million barrels per day (bpd) of crude oil.

Local people have seen few benefits from the industry.

Poverty, graft, lawlessness and struggles over a lucrative trade in stolen crude fuel militancy and unrest in the delta.

The men's abduction from the Bulford Dolphin exploration rig, 40 miles off the coast of Bayelsa, has raised concerns about security in the world's eighth biggest exporter of crude oil.

The sophisticated night-time raid, carried out by 20 to 30 gunmen in four speedboats, showed that even deep offshore facilities are no longer safe.

The rig is owned by the Norwegian oilfield services group Fred Olsen Energy ASA and leased to the Nigerian firm Peak Petroleum, which operates it in partnership with Equator Exploration.

The attack had no impact on oil output as the facility is an exploration rig that will not produce crude for years.

The militant Movement for the Emancipation of the Niger Delta (MEND), whose attacks have forced the closure of more than 500,000 barrels per day of oil production since February, said yesterday it was not involved in the latest abductions.

REUTERS SY BST1335