Algerian troops have
surrounded a gas facility in Algeria, where some 20 foreign workers are
being held hostage by Islamist militants, officials say.
The kidnappers killed a Briton and an Algerian after attacking and occupying the complex at In Amenas on Wednesday.
The captives include British, Japanese, US, French and Norwegian nationals.
Algerian Interior Minister Daho Ould Kabila said the
militants wanted to leave the country with the hostages, but he had
refused to let them go.
"We reject all negotiations with the group, which is holding
some 20 hostages from several nationalities," he said at a press
conference on Wednesday evening.
Mr Kabila added that the kidnappers were Algerian and
operating under orders from Mokhtar Belmokhtar, a senior commander of
al-Qaeda in the Islamic Maghreb (AQIM) before late last year, when he
set up his own armed group after apparently falling out with other
leaders.
Meanwhile, alleged spokesmen for the militants
claim they have kidnapped 41 foreigners. Dozens of Algerian workers are
said to have been released.
Border closed
Mr Kabila said a heavily armed "terrorist group" of around 20
men had attacked a bus carrying workers from In Amenas at about 05:00
(04:00 GMT).
The gas field is operated by the Algerian state oil company,
Sonatrach, along with the British oil company BP and Norway's Statoil.
It is situated about 1,300km (800 miles) south-east of the
capital, Algiers, and about 60km (37 miles) west of the Libyan border.
The attackers were repelled by police who had been escorting
the bus, but a Briton and an Algerian national had been killed, Mr
Kabila said. Two other British nationals, a Norwegian, two police
officers and a security guard were also hurt in the fire fight, he
added.
Afterwards, the militants drove to the gas facility's living
quarters and took a number of Algerian and foreign workers hostage.
They were being held in one wing of the living quarters, which the security services and army had surrounded, Mr Kabila said.
"Since then, they've been facing off. The security forces are consolidating their position around the base," he added.
A worker told France's Le Figaro newspaper the captors had mined the facility and demanded food, water and vehicles.
Mr Kabila said nearby border crossings had been closed as a
precaution and that the foreign ministry was in contact with diplomats
from the hostages' countries.
UK Foreign Secretary William Hague confirmed the captives
included "a number of British nationals", adding: "This is therefore a
very dangerous situation."
He said the UK government was working "around the clock" to resolve the crisis.
Foreign Secretary William Hague: ''This is an extremely dangerous situation''
US Secretary of Defence Leon Panetta said he could not confirm the exact number of Americans seized in the attack.
"By all indications this is a terrorist act and the United
States strongly condemns these kinds these kinds of terrorist acts," he
said.
Meanwhile Norwegian Prime Minister Jens Stoltenberg said 13
Norwegian employees of Statoil were believed held hostage at the gas
facility. Irish Foreign Minister Eamon Gilmore said one of its nationals
was a hostage.
Japanese news agencies, citing unnamed government officials, said there were three Japanese hostages.
'Disastrous outcome'
Two groups led by Belmokhtar - the Khaled Abu al-Abbas Brigade
and the Signed-in Blood Battalion - said they were behind the incident.
Earlier, a man claiming to be a spokesman for the militants told BBC Arabic that al-Qaeda had carried out the attack.
The BBC's Frank Gardner says there has been a spate of profit-driven abductions in the region
He claimed that they had allowed Algerian workers to leave the gas facility and were only holding foreign nationals.
A list of demands had been sent to Algerian authorities, and
the hostages would be killed if troops attempted to rescue them, the
spokesman added.
''Storming the gas complex would be easy for the Algerian
military, but the outcome of such an operation would be disastrous," he
warned.
There are conflicting reports about the motives behind the attack.
Earlier the AFP news agency quoted one worker as saying the
militants had demanded the release of 100 Islamist prisoners currently
detained in Algeria. Another report said they wanted France to end its
military operation in Mali.
Militant groups have vowed to avenge France's military
intervention in Mali, where its forces have been battling Islamists
linked to AQIM for the past week. Algeria has been allowing French
aircraft to use its air space.
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