UPDATE 3-Nigerian rebels halt offensive, seek peace talks

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

* Government welcomes news, army maintains own ceasefire

* Oil markets take wait-and-see attitude

* Rebels demand military withdraw from parts of Niger Delta

(Adds government comment, paragraphs 11-12)

By Austin Ekeinde

PORT HARCOURT, Nigeria, July 15 (Reuters) - A Nigerian militant group on Wednesday declared a 60-day ceasefire in its offensive against the country's oil industry to provide a chance for peace talks with the government.

The Movement for the Emancipation of the Niger Delta (MEND), whose attacks 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.

The government welcomed the announcement and the military said it would maintain its own two-month ceasefire.

"We are already reaching out to them for dialogue and I assure them that the president can be trusted," said Timiebi Koripamo Agary, spokeswoman for the presidential committee on amnesty.

At least one militant leader, Soboma George, said his fighters would abide by the MEND ceasefire and seek peace talks.

MEND's announcement 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," said an oil trader with a big European company.

Reflecting the fragility of the ceasefire, MEND threatened on Wednesday to resume its offensive after it said seven navy gunboats were headed to one of its camps. But the military denied any attack plans.

MILITANT DEMANDS

MEND has demanded the military withdraw from certain areas of the Niger Delta before negotiations could commence.

"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 group said.

Defence Minister Godwin Abbe dismissed the demand.

"The government will make decisions as to the deployment of troops when the conditions become ripe enough and when law and order is comfortably established," Abbe 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.

The government relies on Niger Delta oil income for more than 90 percent of its revenues and splits the profits with the 36 Nigerian states. Nigeria is Africa's biggest oil producers. "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."

MEND 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.

President Umaru Yar'Adua has offered a 60-day amnesty programme to all militants 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 amnesty and was released on Monday after being in detention for more than a year on gun-running and treason charges.

(For a factbox on how oil firms are affected by Niger Delta unrest, please click on [ID:nLE331984].) (Additional reporting by Felix Onuah, Camillus Eboh and Joe Brock in London; Writing by Randy Fabi; Editing by Angus MacSwan)