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          Saudi forces hunt militants after attack
          (Agencies)
          Updated: 2004-05-29 22:37

          Suspected Islamic militants sprayed gunfire inside two oil industry compounds on the Persian Gulf, killing at least six people — including one American — before taking hostages at a nearby expatriate residential complex.


          A burned out car seen in an image from television from the eastern Saudi Arabian city of Khobar on Saturday May 29 2004 after gunmen opened fire on compounds housing offices of oil companies. At least six people are reported killed including a 10-year old boy and three Westerners according to local sources. [AP]
          Saudi security forces stormed the residential compound and opened fire in search of the militants, though a police officer said all hostages had been freed and negotiations were under way. British and Filipino citizens and Saudi guards were reportedly among the dead, as well as a 10-year-old Egyptian boy whose father worked at the oil compound. There were reports the death toll could reach 15.

          It was the second deadly assault this month targeting the oil industry in Saudi Arabia, the world's biggest oil exporter. Previous terror attacks in Saudi Arabia have been blamed on al-Qaida, which has vowed to undermine the Saudi kingdom for its close ties to the United States.

          The shooting rampage Saturday happened in the Gulf city of Khobar, about 60 miles east of Dammam in an eastern region 250 miles northeast of Riyadh.

          Guards at the oil industry compounds, which hold offices and employee apartments, said four gunmen in military-style dress attacked, and then engaged in a shootout with Saudi security forces before holing up inside the Oasis residential compound down the street and taking hostages.

          Saudi forces fired shots inside the residential complex, officials said, speaking on condition of anonymity. Earlier, a police officer inside the housing compound told The Associated Press that all hostages had been released and negotiations were under way.

          At least 10 ambulances were seen outside the Oasis compound, an upscale complex owned by a Saudi businessman. Hundreds of policemen surrounded the compound, and helicopters hovered overhead, witnesses said.

          At least one of the oil industry compounds was believed to be occupied by Apicorp, the Arab Petroleum Investment Corporation and investment arm of Organization of Petroleum Exporting Companies.

          The Egyptian boy who was killed was the son of an Apicorp employee, said Mahmoud Ouf, an Egyptian consular officer in Riyadh. Apicorp had no immediate comment.

          Witnesses said they saw three men with Western features lying on the ground covered with newspapers. Those bodies were taken away in ambulances, they said.

          The U.S. Embassy said one American was confirmed dead. The British Foreign Office in London was investigating reports that a British citizen also was killed. Philippines officials in Manila said they were checking unconfirmed reports that three Filipinos were among the dead.

          The pan-Arab satellite television network Al-Arabiya showed the body of a man, apparently shot dead, in the driver's seat of a car and the burned-out frame of a sport utility vehicle. Bullet holes were visible in other vehicles shown, some with windows smashed and blood staining the seats.

          Hours after the attacks began, Saudi Interior Ministry officials were not responding to telephone calls seeking comment and no official statements had been released. State-run Saudi TV had not mentioned the attacks.

          Two security guards were believed to be dead, according to a Western diplomat who spoke on condition of anonymity.

          Inside the Oasis compound, a police officer who would not identify himself beyond his rank — a major — said there were no more hostages, but that authorities had surrounded the gunmen and "are negotiating certain demands." He denied reports there had been shooting at that compound.

          Lebanon's ambassador to Saudi Arabia, Ahmed Chammat, told AP that five Lebanese hostages had been released. He did not know the nationalities of others who might have been taken captive.

          "The gunmen barged into the homes of the Lebanese at Oasis compound and took them hostage," he said. "The gunmen began by attacking Apicorp then they moved to the petroleum company. They were being pursued by Saudi police, so they went into the (Oasis) compound and took hostages."

          Witnesses, all of whom spoke on condition they not be identified, said the militants who apparently carried out the attack used a small car and were accompanied by another sports utility vehicle.

          Saudi Arabia launched a high-profile crackdown on terrorists after attacks on Riyadh housing compounds in 2003, and claims to have foiled dozens of terror plots in the kingdom.

          The most recent attack targeted the offices of Houston-based ABB Lummus Global Inc. in the western city of Yanbu on May 1, killing six Westerners and a Saudi.

          Saudi Arabia relies heavily on 6 million expatriate workers to run its oil industry and other sectors. Many decided to leave, at least temporarily, after the Yanbu attack. Then, U.S. Ambassador James C. Oberwetter advised Americans to leave the country — a move that was criticized by Saudi officials.

          Fears of whether Saudi Arabia, the world's largest oil producer, can protect its oil industry from terrorists were partly blamed for recent oil price spikes to new highs.

          In April, attackers bombed a security building in Riyadh, killing five people and injuring 148 more.

          A week ago, a German who worked as a chef for Saudi Arabia's national airline was shot and killed by unknown assailants. Authorities are investigating whether the attack was linked to terrorism.

          In 1996 in Dhahran, an eastern city just outside Khobar, a truck bombing killed 19 American military personnel at the Khobar Towers barracks.

           
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