This record is a partial extract of the original cable. The full text of the original cable is not available.

C O N F I D E N T I A L SECTION 01 OF 02 ABUJA 000806 
 
SIPDIS 
 
 
E.O. 12958: DECL: 04/29/2013 
TAGS: CASC ASEC EPET ENRG ECON PINS PGOV NI
SUBJECT: NIGERIA: NEGOTIATIONS CONTINUE FOR RELEASE OF 17 
U.S. HOSTAGES 
 
 
REF: ABUJA 768 
 
 
Classified by Ambassador Howard F. Jeter for reasons 
1.5 (b) and (d). 
 
 
Summary 
------- 
¶1. (C) Transocean Sedco Forex Managing Director Ian Clark 
told the Ambassador April 30 that the 273 hostages, including 
96 expatriates of whom 17 are U.S. citizens, are in good 
health--despite contrary press reports. However, food and 
water stocks may be running low. President Obasanjo offered 
to assist in peacefully resolving the situation. Press 
reports indicate the Nigerian Navy may use force to re-take 
the platforms, but GON defense officials disavow any 
intention to act precipitously. End Summary. 
 
 
Hostages in Good Condition 
-------------------------- 
¶2. (U) Clark said Transocean Sedco Forex has been in frequent 
contact with expatriate and Nigerian employees still captive 
on the rigs. Discounting international news reports that the 
hostages have been threatened with bodily harm, Clark said 
they were under considerable emotional stress but in no 
immediate physical danger. However, Clark said basic supplies 
may run short if no settlement is reached soon. He reported 
that hostages are allowed full access to their living 
quarters and may move about the rigs to perform necessary 
maintenance. 
 
 
Local Negotiations Going Nowhere, Federal Government Gets 
Involved 
--------------------------------------------- ------------ 
¶3. (U) Clark told the Ambassador that his company had been 
actively attempting to win the release of the 273 hostages, 
including 17 U.S. citizens and 96 other expatriates. Clark 
said his company had worked closely with the National Union 
of Petroleum and Natural Gas Workers (NUPENG) leadership, and 
that NUPENG President Peter Akpatason had written the workers 
asking them to release the hostages and resume negotiations 
on land. The Rivers State Deputy Commissioner of Police--who 
has jurisdiction over the rigs, made efforts to serve the 
April 25 Federal High Court order that the disgruntled 
workers abandon the rigs immediately, but his efforts were 
rebuffed. 
 
 
¶4. (C) Clark told the Ambassador that he had met earlier with 
President Obasanjo. Obasanjo was sympathetic to his company's 
situation and agreed to assist in resolving the situation 
peacefully, Clark recounted. On Obasanjo's suggestion, Clark 
met Nigeria Labour Congress President Adams Oshiomole, who 
the Ambassador had previously spoken to about the situation. 
Oshiomole agreed to help mediate a solution, offering to call 
the workers on the rigs. The Ambassador also offered to 
accompany Clark to meet the Minister of Labour. Clark agreed 
with the Ambassador that the disgruntled workers might step 
down under the weight of such high-level pressure from the 
GON. 
 
 
¶5. (C) Clark suggested that the threat of military or police 
action might be necessary to break the logjam. He emphasized 
that the threat by itself may be enough, and agreed with the 
Ambassador that the actual use of force would be an unwelcome 
development. Meanwhile, the international press has reported 
that the Nigerian Navy is planning to take the rigs by force. 
However, Nigerian Defense Intelligence Agency and Ministry of 
Defense contacts have told DATT that there is no such move 
afoot. Comment: It is highly unlikely that the military would 
forcefully intervene unless requested and only if the 
situation takes a dramatic turn for the worse. End Comment. 
 
 
Why Takeover the Rigs? Two Versions of the Story 
--------------------------------------------- --- 
¶6. (U) NUPENG's Akpatason told Poloff April 30 that the local 
NUPENG chapter had complained about the continuous use of an 
unsafe boat to transport workers to and from the rigs. After 
several reports that the boat routinely broke down on the 
high seas, NUPENG insisted that Transocean Sedco Forex take 
the workers' safety concerns seriously and consider 
helecoptering workers to the rig. Akpatason said the company 
refused to meet NUPENG's demands, leading union leaders to 
contemplate some type of industrial action. 
 
 
¶7. (U) Akpatson said that as NUPENG worked to resolve this 
problem, the company dismissed five workers, local-chapter 
NUPENG leaders, for undisclosed reasons. The five members, 
who were aboard one of the rigs, then decided to call a 
strike despite receiving an earlier communiqu from NUPENG 
suspending such action, according to Akpatson. He said the 
individuals who orchestrated the takeover used their position 
within the local chapter of NUPENG to influence fellow 
workers, not only to resolve the transportation issue, but to 
keep their jobs. 
 
 
¶8. (U) Clark offered a much simpler explanation for the 
worker action. He said five workers had falsified travel 
receipts. When challenged by company investigators, the 
workers claimed that they were framed. Clark said a 
subsequent police investigation concluded that the workers 
were guilty. Clark said the workers were dismissed solely for 
that reason. The five dismissed worker--who were onshore and 
had not recently been aboard the rigs--then used their 
influence within the union to foment a strike despite NUPENG 
orders to the contrary. 
 
 
Comment 
------- 
¶9. (C) It is possible that the oil workers who took over the 
rigs are using this dispute as a catalyst to extort money 
from the company. Some oil companies have already set the 
precedent of paying-off thugs who take hostages. From the 
workers' perspective, there is no point to negotiating a 
solution that is less beneficial than waiting for the payoff 
that usually comes. Meanwhile, Clark has said that his 
company is ready to take a stand and will not pay. He says 
other oil company executives are supportive of his company's 
decision and have said they will not pay if in similar 
circumstances in the future. 
 
 
¶10. (C) In the end, the workers may accept a solution that 
minimizes actions taken by the Transocean Sedco Forex against 
those involved, with the exception of those dismissed for 
financial irregularities. However, Clark told the Ambassador 
that no matter the settlement negotiated, all workers 
involved in the takeover will be immediately dismissed. 
Following through on this pledge would mark a major departure 
in relations between the oil companies and their workers. 
Clark also said that his company and others henceforth would 
require that oil rig workers sign a code of conduct that 
would provide a basis for the immediate dismissal for 
employees involved in the kind of worker sympathy action that 
is taking place now. Ambassador agreed that this was a good 
idea and offered the good offices of the Embassy to work with 
the GON, labor, and the oil companies to try to bring this 
about. End Comment. 
JETER