Jan. 9 (Bloomberg) -- The Nigerian militant group known as the Movement for the Emancipation of the Niger Delta, or MEND, said it's planning a major attack against the oil industry.

``An attack is imminent that will rock the foundation of the international oil market,'' MEND spokesman Jomo Gbomo said in an e-mail to Bloomberg. A ``smoke screen'' is being devised to divert attention away from the actual target, he said.

Gbomo said the strike would be a reprisal for a government attack last month on a warlord's camp. Nigeria is Africa's biggest oil producer.

MEND's assaults have halted as much as 20 percent of Nigeria's oil production since they started afresh in early 2006. The group's latest action came on Jan. 1, when it attacked two police stations and a hotel in the hub of Nigeria's oil producing-region. At least 12 people were killed in the shooting incident, according to the Nigerian state news service. The action also helped push oil prices about $100 for the first time.

Gbomo yesterday urged ``freelance troublemakers'' to join his fight against the government and achieve a goal of halting 100 percent of oil production in Nigeria.

Armed groups may be preparing for a large-scale attack on an oil installation in Rivers state in Nigeria's delta region, Reuters reported today, citing Jonjon Oyeinfie, a former leader of ethnic rights group Ijaw Youth Council.

Being Held

Gbomo also said that Henry Okah, a leader of MEND, is still being held in an Angolan prison after being arrested on arms charges in September. Okah's arrest sparked a series of kidnappings and attacks against oil companies such as Royal Dutch Shell Plc and Exxon Mobil Corp.

``Henry Okah does seem to be at the center of a lot'' of the motivation for MEND's attacks, said Antony Goldman, a UK- based independent analyst specializing in Nigeria.

Goldman said Gbomo's threat may be genuine, though he pointed out that MEND in the past has not always carried out its threats.

``The do have a slightly surprising capacity, but they're not always good for their word'' Goldman said in an interview from London. ``Traders of course will take positions.''

Crude oil for February delivery fell 51 cents, or 0.5 percent, to $95.82 a barrel at 9:06 a.m. on the New York Mercantile Exchange. Futures reached a record $100.09 a barrel on Jan. 3. Prices are up 72 percent from a year ago.

Militants are demanding a greater share of the wealth from the delta region's oil resources, which have been exploited by foreign oil companies for decades.

To contact the reporter on this story: Julie Ziegler in Lagos at jziegler@bloomberg.net

Last Updated: January 9, 2008 11:33 EST