June 18 (Reuters) - Nigerian militants have carried out a series of attacks against oil facilities in the Niger Delta since the army launched its biggest offensive in the region for years last month. Here are some questions and answers about the security situation in the Niger Delta, home to Africa's biggest oil and gas industry and one of the world's largest wetlands. IS THE SECURITY SITUATION IMPROVING OR DETERIORATING? The main militant group, the Movement for the Emancipation of the Niger Delta (MEND), has launched what it calls "Hurricane Piper Alpha" since the military offensive, warning it will attack oil facilities across the region. But the attacks so far appear to have been carried out by only one faction -- supporters of Government Tompolo, who was targeted by the military campaign. Apart from an attack on Royal Dutch Shell <RDSa.L> in Bayelsa state on Wednesday, they have so far been largely focused in Delta state further west. Industry and security sources say it is virtually impossible to fully protect hundreds of kilometres of pipeline running through remote swamplands from guerrilla-style attacks and expect such strikes to continue. But MEND has so far shown itself unable to repeat the sort of spectacular raids it launched after it first burst onto the scene in late 2005, knocking out more than a quarter of Nigeria's oil output in a matter of weeks. WHAT IS THE IMPACT ON OIL PRODUCTION? U.S. energy firm Chevron <CVX.N> has shut down its operations around Delta state after MEND's first pipeline attack in its latest campaign on May 24, halting around 100,000 barrels per day of output. [ID:nLP693007] Royal Dutch Shell <RDSa.L> has said some of its production has been halted following Wednesday's attack in Bayelsa state but has given no details. [ID:nLI310768] The insecurity makes it difficult for oil companies to repair existing damage to their infrastructure, making a precise figure for the overall impact on production hard to calculate. Nigerian oil production peaked at around 2.4 million bpd before MEND's biggest attacks in early 2006 and production has never fully recovered, with acts of sabotage and pipeline bombings continuing ever since. Junior Finance Minister Remi Babalola said last week that Africa's largest oil exporter was currently pumping around 1.7 million bpd, although trade sources have said they expect oil exports to average 1.83 million bpd in June. The discrepancy is partly due to differences in which production streams are classified as condensate. WHAT IS THE IMPACT ON THE NIGERIAN ECONOMY? Nigeria relies on oil earnings for around 90 percent of foreign earnings. The global downturn and lower OPEC export quotas are already eating into its revenues. Sub-Saharan Africa's second-biggest economy is likely to see its budget deficit widen to around 8.5 percent of GDP this year, according to the International Monetary Fund. [ID:nL947959] Any unrest which cuts oil production significantly, especially with world oil prices still at around half their $140 a barrel peak of a year ago, would place even more strain on government finances. HOW SUCCESSFUL WAS THE MILITARY OPERATION? The military offensive in Delta state last month focused on "Camp 5" and the community of Oporoza, the base and home respectively of Government Tompolo, accused by the military of profiting from a lucrative trade in stolen oil. Some local rights groups said the armed forces were guilty of abuses, saying they had targeted ethnic Ijaw communities, a charge denied by the military. Thousands of civilians are thought to have fled their villages after helicopter raids on Camp 5 and Oporoza, though witnesses said they fled out of fear that surveillance aircraft would open fire again rather than from actual fighting. Tompolo appears to have been isolated by other factions within MEND, some of whom have expressed willingness to consider an amnesty offer proposed by President Umaru Yar'Adua. Public opinion in Nigeria, including in parts of the delta where widespread criminality has led to permanent insecurity, has largely been supportive of the military offensive. For an analysis on Nigeria's Niger Delta click [nLI6064](For full Reuters Africa coverage and to have your say on the top issues, visit: http://af.reuters.com/ ) (Writing by Nick Tattersall)
Residents ride in the back of a van as they flee with their farm products out of Odi town in the Bayelsa State, Niger-Delta region, May 27, 2009. Nigeria's Warri refinery ...
