Nigerian rebels halt offensive, seek peace talks

* MEND says ceasefire a goodwill gesture for Okah's release

* Military welcomes news, reiterates its own ceasefire

* Oil markets take wait-and-see attitude

* Rebels demand military withdraw from parts of Niger Delta

By Randy Fabi

ABUJA, July 15 (Reuters) - Nigeria's most prominent militant group on Wednesday declared a 60-day ceasefire in its offensive against Africa's biggest oil industry to provide a chance for peace talks with the government.

The Movement for the Emancipation of the Niger Delta (MEND), responsible for attacks that have cut around 300,000 barrels per day of Nigeria's oil output since May, said its decision was also a goodwill gesture for the release of rebel leader Henry Okah on Monday.

"Hopefully, the ceasefire period will create an enabling environment for progressive dialogue," MEND said in a statement.

Colonel Rabe Abubakar, spokesman for the military task force, welcomed the announcement and repeated that the army would maintain its own ceasefire during the government's amnesty period.

The ceasefire had little impact on global oil prices as traders were sceptical that peace could be restored in the Niger Delta after years of conflict.

"Until we see more oil actually coming out of Nigeria, it shouldn't have too much of an impact on Nigerian crude oil prices," an oil trader with a European major said.

President Umaru Yar'Adua has offered a 60-day amnesty programme to all gunmen in the Niger Delta in the hopes of halting the violence, which has cost the country billions of dollars in lost oil income.

Okah was the first senior militant to accept the clemency and was released on Monday after being in detention for more than a year on gun-running and treason charges.

The rebel leader, who denies being the leader of MEND, told Reuters on Tuesday he didn't think other militants would take the amnesty, which requires individuals to give up their arms and participate in a federal programme to reintegrate them into society. [ID:nLE694320]

MEND, a loose faction of militant groups, has dismissed the amnesty programme in its current form because they played no role in its creation. But it invited talks with the government and said it was forming a negotiating team in preparation.

MILITANT DEMANDS

MEND said the military would need to withdraw from certain areas of the Niger Delta before negotiations could begin.

"A compulstory prelude to talks is the withdrawal of the military Joint Task Forces from the Gbaramatu communities and the return of all the displaced persons back to their various homes," the militant group said.

Analysts said any peace talks will be difficult because Niger Delta militants will demand the federal government's property rights to land where oil firms are currently operating.

But the government relies on Niger Delta oil income for more than 90 percent of its revenues and splits the oil profits with the 36 Nigerian states.

"Their struggle is principally about land," said Miabiye Kuromiema, chief executive officer of Port Harcourt-based Southernfields Development Partners. "The land should not be owned by (state-run oil firm) NNPC or the federal government. It should go back to the people."

Kuromiema warned that if the peace talks fail, the violence in the Niger Delta could get "exponentially" worse.

MEND's attacks have forced Royal Dutch Shell (RDSa.L), U.S. oil major Chevron (CVX.N) and Italy's Agip (ENI.MI) to cut around 300,000 barrels per day in the last six weeks and has helped support global oil prices. (Additional reporting by Joe Brock in London; Editing by Richard Balmforth)