"There is a community protest. They are carrying sticks and machetes, but the place is full of government security forces who were drafted in over the weekend. The company has not lost control of the facility," a security source said.

Another source said the plant had been shut down as a precaution and talks had started to resolve the dispute.

Oil spills are one source of constant friction between oil companies and communities in the Niger Delta, a vast wetlands region which is home to all of Nigeria's crude.

Companies blame spills on criminal gangs illegally tapping oil from their pipelines, while communities blame the companies and often demand substantial compensation.