(Adds denial by Nigerian militants) MALABO, Feb 17 (Reuters) - Gunmen in motor boats attacked the presidential palace in oil-producing Equatorial Guinea's island capital on Tuesday before being repelled by the armed forces, the government said. The government said the attackers came from nearby Nigeria's Niger Delta, where seaborne raiding parties have grown increasingly bold in the past two years, launching assaults on banks and other targets in neighbouring countries. Residents in Malabo, the hub of the fast-growing offshore oil industry in sub-Saharan Africa's third biggest crude producer, were woken by gunfire. Government forces used a helicopter gunship to repulse the pre-dawn attack, they said. "Our country was once again the victim of an attack by the rebels of the Delta on the city of Malabo," the government said in a statement. "A contingent of rebel terrorists from the Delta arrived in numerous boats and tried to invade the capital, with the aim of taking and destroying the presidential palace," it said. At least one attacker was shot dead and a group drowned when their boat was sunk by the Navy, it said. The former Spanish colony has suffered decades of instability and in 2004 dozens of foreign mercenaries, mostly South Africans, were caught trying to overthrow the president. The 2004 coup attempt caught the world's attention as it was led by a former British special forces officer. The main militant group in Nigeria's southern Niger Delta denied any involvement in Tuesday's attack. "We heard of the incident but MEND is not involved at all. The people are paranoid," the Movement for the Emancipation of the Niger Delta (MEND) said in a statement. Government aircraft, including at least one helicopter gunship, took to the air over the city during the engagement, said a Western resident who declined to be identified. "(The attack) involved automatic weapons fire. There was active engagement for at least an hour. There are consistent reports that some sort of launch or fast boats were used. At least one put people ashore before the shooting started," he said. "WOKEN UP BY GUNFIRE" President Teodoro Obiang Nguema Mbasogo was in Bata, in the part of Equatorial Guinea on mainland Africa, the Spanish state news agency EFE and a source in Malabo said. "We were woken up to gunfire at about 4 a.m. It lasted for about three hours. It was coming from the presidency. Now it is calm," one resident, who declined to be named, told Reuters. "We don't know what is happening. We are waiting for information. For now the city is blocked off. We can't get in." Although the government said the gunmen had tried to seize Obiang's palace, Spain's Foreign Ministry said the raid appeared to be criminal in nature, rather than an attempted coup d'etat. Previous attacks by gunmen operating in the oil-producing Gulf of Guinea around Nigeria's Niger Delta, including a seaborne raid on banks in Bata in December 2007, have triggered waves of harassment of foreigners in Equatorial Guinea. Equatorial Guinea, with a population of barely 600,000 people, has attracted many immigrants from nearby countries in the last decade as its oil industry has expanded. The country hopes to increase its oil output to 400,000 barrels per day this year from current levels around 380,000. (Additional reporting by Alistair Thomson and David Lewis in Dakar; Paul Day and Jason Webb in Madrid; Nick Tattersall in Lagos; Editing by Angus MacSwan)
Soldiers are seen at the military camp Alpha Yaya Diallo in Connakry December 27, 2008. Guinea's military junta was boosted by the endorsement of neighbouring Senegal as it attempted to garner ...