By Andrew Heavens

ADDIS ABABA, April 27 (Reuters) - Ethiopian insurgents who captured seven Chinese workers during a deadly attack on an oil terminal will free them as soon as the military stops activities in the area, a rebel spokesman said on Friday.

Ethiopia has sent defence forces to the region bordering Somalia to hunt down fighters from the separatist Ogaden National Liberation Front (ONLF) which carried out Tuesday's pre-dawn raid killing 65 Ethiopians and nine Chinese.

The raid on a Chinese-run oil facility was one the worst attacks to date on Beijing's growing interests in Africa.

The ONLF, fighting for independence since 1984, had contacted the Red Cross to help with the handover of the Chinese hostages who were "safe, healthy and well treated", a London-based spokesman said.

"The Ethiopian army is making lots of movements around the area at the moment. That will impact how quickly we can release them," Abdirahman Mohammed Mahdi told Reuters by telephone.

"We are trying to work out how to release the seven Chinese people safely. We can't just leave them somewhere to be picked up. This is the Ogaden and there are lots of lions and hyenas. It would not be safe."

Ethiopian officials were not immediately available for comment. The International Committee of the Red Cross (ICRC) said it was ready to facilitate in the handover of the Chinese hostages, but declined to say whether the ONLF had contacted it about playing a role.

"The ICRC is always ready to act as a neutral intermediary for humanitarian reasons if all parties involved agree and make a request," ICRC spokeswoman Anna Schaaf told Reuters in Geneva.

The ONLF have repeatedly warned energy companies they will not allow oil and gas exploration in the area as long as the Ogaden people are "denied their rights to self-determination".

In an open letter published on its Web site, the ONLF said it wanted to "assure the people of China that your citizens are safe, healthy and well treated."

"The ONLF would like to assure the people and the government of China that your citizens will be reunited with their families as soon and as safely as possible. We have no conditions on this pledge," the statement said.

The Chinese staff worked for Zhongyuan Petroleum Exploration Bureau, part of the much larger China Petroleum and Chemical Corp. (Sinopec).

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