Islamist militants in eastern Algeria are reported to have abducted several foreigners, in what the UK Foreign Office says is a "terrorist incident".
At least one person has been killed in the attack on an oil facility at the town of In Amenas, local media say.
It is unclear what nationalities were involved.
The oil giant BP says there has been an incident at the installation it runs in partnership with Norwegians and Algerians.
The abduction comes as French forces are preparing to attack Islamist militants in Algeria's southern neighbour, Mali. It is unclear if Wednesday's attack is linked.
The UK Foreign Office said it "was seeking clarification from oil companies working in the area as to whether they have personnel involved".
Early reports said five Frenchmen and a Japanese national had been seized, but a Western diplomat told the French news agency AFP those abducted included British and Norwegian staff.
The In Amenas gas field is a joint operation by BP, the Algerian state oil company, Sonatrach, and the Norwegian firm, Statoil. A Japanese engineering company is a contractor on the project.
The Japanese foreign ministry said it was gathering information on the incident.
The Algerian army is reported to have launched an operation to free the hostages.
Islamist militants in the region have in recent years seized a number of foreigners, mainly in Mali. Eight French nationals are currently being held across the region.
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