Militants free 13 hostages in Nigerian oil delta

YENAGOA, Nigeria, June 12 (Reuters) Nigerian militants freed 12 foreign hostages and one Nigerian in the oil-producing Niger Delta as a prelude to peace talks with the incoming government of President Umaru Yar'Adua.

The release of the 13 men, including five Britons and three Americans, in Bayelsa state yesterday was the latest sign of easing tensions in Africa's top oil producer after Yar'Adua promised to address grievances in the impoverished region.

The other freed hostages were two Indians, one Filipino and one South African, who said they had been subjected to mock executions by their captors.

A faction of the rebel Movement for the Emancipation of the Niger Delta (MEND) had earlier sent an email to the media announcing the release of 11 hostages.

The men were picked up in a helicopter by Governor Timipre Sylva, who then hosted them at a dinner. His spokesman initially said there were five Americans and three Britons but later corrected himself. No hostages were left in Bayelsa, he said.

''The first three days were hell. There were a lot of mock executions,'' said South African Duplooy Smit, who was seized from an offshore oil industry vessel on May 25. ''They were all high on local gin and marijuana, and carrying machineguns so you never knew what would happen next.'' OIL PRICES Attacks on oil facilities and kidnappings over the past 18 months have forced Western firms to reduce Nigeria's oil production by a quarter, raising world oil prices, shutting Nigerian power stations and refineries and playing havoc with the national budget.

About 200 foreigners have been seized and 18 hostages are still being held by various armed groups in the vast wetlands region, home to Africa's largest oil industry.

Most are being held by groups seeking ransom, but the line between crime and militancy is blurred.

The MEND emerged in 2005 as a coalition of armed groups from the region. It split into at least two factions last year.

The factions say they are fighting against neglect in a region which produces 90 per cent of Nigeria's hard currency earnings but where most people have no electricity, roads, running water or decent schools.

The email said the group would suspend hostilities on condition Yar'Adua released two jailed leaders from the delta, compensated delta villages for oil spills and removed soldiers from the region.

''They were saying that the Niger Delta had all the oil but the least development and wanted to put pressure on the government. But now the channel for negotiations has been opened,'' said Smit.

Another faction released six hostages days after Yar'Adua's inauguration on May 29 and promised to halt attacks on oil facilities for a month to allow for talks.

Yar'Adua used his inauguration speech to promise to pay urgent attention to the delta and call for an end to violence.

In the weeks since then, he has been reaching out to militant leaders to prepare the ground for talks.

Reuters RKM GC1502