(Adds more quotes) By Austin Ekeinde PORT HARCOURT, Nigeria, Nov 6 (Reuters) - Armed militants and villagers invaded an Italian oil production facility in Nigeria on Monday, holding almost 50 people hostage in a dispute over pollution, authorities said. Agip, a unit of Milan-based ENI <ENI.MI>, said it halted 50,000 barrels a day production from the flow station at Tebidaba, the latest target in a wave of attacks against the oil industry in the world's eighth largest exporter. "Some militants overran Tebidaba flow station and now we are making contact with them," said Victor Akenge, environment commissioner of Bayelsa state where the facility is located. "They are armed youths and community members working together. They are angry about neglected pollution over the years. They want spill sites cleaned up and compensation paid." About 48 Agip workers and security staff are being held at the flow station, located deep in the mangrove swamps of Bayelsa state in southern Nigeria. "Of course the production is blocked," an Agip spokesman in Milan said. There were oil spills in the Tebidaba area in March and July after explosions on Agip's pipeline, which feeds the 200,000-barrel-a-day Brass tanker terminal. It is often difficult to distinguish between militancy and criminality in the lawless delta, where almost every community has arsenals and vigilantes, and theft of crude oil from pipelines is widespread. In this case, the protesters are arguing that compensation is due because the spills were caused by equipment failure, Akenge said. RESENTMENT Many residents of the impoverished region resent the multibillion-dollar industry for damaging their environment while bringing them few benefits. Politicians also use gunmen to reinforce claims of supremacy around election time, and many fear violence will intensify in the run-up to general elections in April. A wave of attacks by the militant group Movement for the Emancipation of the Niger Delta (MEND) in February forced Shell to pull out hundreds of workers from neighbouring Delta State and reduce output by about 500,000 barrels per day. MEND is campaigning for spill compensation, more regional autonomy over oil resources and freedom for two jailed leaders from the delta. The U.S. consulate in Lagos issued a warning on Friday that a militant group was planning to launch a campaign of 10-20 bombings, attacks on oil facilities and kidnappings in the first week of November. It was unclear whether the Tebidaba attack was part of this expected action. A British and one American oil worker are still missing after being abducted from an oil industry ship off the Bayelsa coast last week. A state government official said they would likely be freed later on Monday. Hostages are rarely harmed in Nigeria, and are usually released after money changes hands. (Additional reporting by Ian Simpson in Milan, Tom Ashby and Tume Ahemba in Lagos)) (Writing by Tom Ashby; Editing by James Jukwey; Lagos newsroom +234 1 463 0257; thomas.ashby@reuters.com))
