Al-Khobar: Suspected Islamist extremists holding hostages at a compound in this Saudi oil city released eight of their captives, who reported that more than 50 people were still being held, a private security guard said early today (May 30, 2004).

"Eight hostages, including two Iraqi-born American men, a Jordanian woman and an Egyptian woman, were released at around 9:00 pm (23:30 hours IST) Saturday," the security guard at The Oasis compound said, requesting anonymity.

"They said their captors freed them because they are either Arab or of Arab descent, and that 50 to 54 people remained hostage," added the guard, himself an Arab.

It was not clear if that was still the number of remaining hostages.

Saudi security forces closed off all roads leading to the site of the hostage-taking drama, and hustled reporters away, as they prepared to storm the building where the gunmen were holding the captives.

Security forces have been encircling the gunmen for several hours after the suspected Islamist militants went on a shooting spree yesterday, attacking the compound and two oil-related facilities - the building of the Arab Petroleum Investment Corp (Apicorp) and a "Petroleum Center" where oil firms have offices.

Crown Prince Abdullah bin Abdul Aziz said about 10 Saudis and foreigners were killed. He put at "four or five" the number of attackers "who have taken refuge in the compound where they are besieged."