Hostages Released After Standoff in Saudi Arabia May 30, 2004 By THE ASSOCIATED PRESS Filed at 7:00 a.m. ET KHOBAR, Saudi Arabia (AP) -- Saudi forces freed dozens of American and other foreign hostages Sunday after a shooting rampage turned into a daylong standoff with Islamic militants at an expatriate resort. A Saudi security official said the lead attacker was in custody and two other suspects were being arrested. Saudi officials would not comment on the condition of the hostages. However, a diplomat in Khobar said officials told him there were deaths among the hostages and attackers. Speaking on condition of anonymity, he said he did not know how many hostages were dead, but was informed that two gunmen were killed. At least 10 others -- including an American -- died in the attack claimed by an al-Qaida-linked group that began Saturday morning when gunmen in military-style dress opened fire on security forces at two oil industry compounds in Khobar, 250 miles northeast of Riyadh. The assailants -- believed to number up to seven -- then fled up the street, taking some 45-60 hostages in a high-rise housing mainly foreigners. Before the release, Saudi security forces had stormed the walled housing compound and surrounded the attackers on the sixth floor of a building. A security official said one attempt during the night to storm the building where the hostages were being held was abandoned after booby traps were discovered. But just after sunrise, three security forces helicopters arrived and dropped off commandos. Gunfire, heard sporadically overnight, rang out again. Within a few hours, the standoff was over. ``It has ended. One has been arrested and two are in the process of being arrested -- they are surrounded,'' said a Saudi official, who declined to be named. The attack was the second deadly assault this month against the Saudi oil industry and came amid oil prices driven to new highs partly by fears that the Saudi kingdom -- the world's largest oil producer -- is unable to protect itself from terrorists. Osama bin Laden, blamed for past terror attacks in Saudi Arabia, has vowed to destabilize the oil industry and undermine the kingdom for its close ties to the United States. Several Saudi newspapers reported Sunday that the attackers threw at least one body from the building where they were holed up and had mutilated some of the bodies of those they killed. Reporters were kept back from the compound, but a bus carrying Saudi troops and other police and military vehicles could be seen pulling out. As forces withdrew, a Saudi soldier flashed a V-for-victory sign from the window of his gun-mounted vehicle. In Washington, State Department spokesman Tom Casey said an American man who worked for an oil company was confirmed dead, but did not identify him or his employer. The U.S. Embassy in Saudi Arabia reiterated a call to its citizens to leave the kingdom. Saudi Crown Prince Abdullah said about 10 Saudis and foreigners were killed in the attack. The Saudi newspaper Al-Riyadh, quoting security officials, put the number dead at 16, including seven Saudi security agents. An American man, a British oil executive, a 10-year-old Egyptian boy, an Italian cook and three Filipinos were among those confirmed killed. A Swedish citizen and Saudi guards were also reportedly among the dead. On Sunday, the British Foreign Office confirmed that oil executive Michael Hamilton died during the shooting and the Italian Foreign Ministry said that Italian cook Antonio Amato died. A statement posted on several Islamic Web sites claimed the attack in the name of the Al-Quds (Jerusalem) Brigade and was signed the ``al-Qaida in the Arab Peninsula.'' It said the attacks targeted U.S. companies and that a number of ``crusaders'' had been killed. One Saudi official security official, speaking on condition of anonymity, said the method of the attack was ``definitely inspired by al-Qaida.'' ``The terrorists' goal is to disrupt the Saudi economy and destabilize our country. But they will not succeed,'' Saudi ambassador Prince Bandar bin Sultan said in a statement released in Washington. ``With every desperate act of violence, our effort and resolve to destroy the terrorists only grows.'' The Arab satellite station Al-Arabiya reported the Saudi oil minister met with oil executives to assure them that the attack would not affect oil supplies. He planned to meet ambassadors on Sunday for the same purpose, the station said without attribution. Michael Rothman, chief energy strategist at Merrill Lynch in New York, said there might be ``a limited psychological reaction'' in oil markets but that the Khobar attack would not affect supply. The Arab News, quoting witnesses, said the attackers dragged the body of an unidentified victim behind their car along a highway. Gunmen who attacked an oil contractor's office in western Saudi Arabia earlier this month dragged the body of an American victim from the bumper of their car. According to residents and employees of the Oasis Residential Resorts, where the hostage-taking occurred, the militants asked questions when they arrived that indicated they were trying to separate Muslims from non-Muslims. Islamic militants have been criticized in the Arab world for previous attacks in which Saudis and other Arabs were killed. Lebanon's ambassador to Saudi Arabia, Ahmed Chammat, told The Associated Press that five Lebanese hostages had been released. One of them, Orora Naoufal, said she cowered in her apartment with her 4-year-old son for five hours after a brief encounter with two of the gunmen, whom she described as clean-shaven and wearing military uniforms. She told AP by telephone that the gunmen asked her where the ``infidels'' and foreigners were, and whether she was Muslim or Christian. ``I replied: 'I am Lebanese and there are no foreigners here.''' She said the gunmen told her to ``Go convert to Islam, and cover up and go back to your country.'' The Oasis compound is upscale expatriate housing that includes neighborhood necessities -- shops, restaurants, playgrounds, fitness centers -- in addition to a hotel and leisurely extras such as a grassy beach in a private Gulf cove and an ice-skating rink, according to the compound's Web site. One of the targeted oil industry compounds contains offices and apartments for the Arab Petroleum Investment Corporation, or Apicorp, and the other -- the Petroleum Center building -- houses various international firms. The Egyptian boy who was killed was the son of an Apicorp employee, said Mahmoud Ouf, an Egyptian consular officer in Riyadh. Apicorp, in a brief statement published in the Saudi newspaper Al-Jazirah on Sunday, said three of its employees were among the dead. Apicorp is the investment arm of the Organization of Arab Petroleum Countries. Offices at the Petroleum Center include a joint venture among Royal Dutch/Shell Group, Total SA and Saudi Aramco; Lukoil Holdings of Russia; and China Petroleum & Chemical Corp., or Sinopec. All of those employees were safe, said Shell spokesman Simon Buerk and a Saudi oil industry official, Yahya Shinawi, though it wasn't clear whether other companies had accounted for all their employees. Saudi Arabia relies heavily on 6 million expatriate workers to run its oil industry and other sectors. The kingdom produces about 8 million barrels of oil a day. Saudi Arabia launched a high-profile crackdown on terrorists after attacks on Riyadh housing compounds in 2003. The most recent attack targeted the offices of Houston, Texas-based ABB Lummus Global Inc. in the western city of Yanbu on May 1, killing six Westerners and a Saudi. Many expatriates left after the Yanbu attack. http://www.nytimes.com/aponline/international/AP-Saudi-Attacks.html?ex=1086921521&ei=1&en=70f1a3b25d6f9463