Iraqi Oil Exports Sink to 2-year Low

Posted GMT 12-7-2005 17:8:51                   

BAGHDAD/LONDON (Reuters) -- Iraq's oil exports in November fell to their lowest level in over two years, as repeated bombings kept a major pipeline shut and poor weather hurt shipments, shipping sources said yesterday.

The latest data underscored Iraq's troubles in reviving its ailing oil sector, damaged by years of neglect under Saddam Hussein's regime and hampered by frequent attacks on its infrastructure more recently. Average exports in November fell to 1.21 million barrels a day -- the lowest level since at least November 2003 -- and down from 1.24 million barrels per day last month, according to Reuters data. That is a far cry from the 5 million barrels per day the US government hopes Iraq will be able to produce once investment pours in to the sector.

So far, Iraq has succeeded in attracting little foreign investment into its oilfields, as the country flounders under daily attacks by a Sunni Arab-led insurgency waging a battle to destabilise a Shi'ite and Kurdish-led government.

Exports in November were down for a third straight month, as frequent attacks by saboteurs on the northern pipeline from Kirkuk's oilfields halted flows to Turkey's Ceyhan terminal for the last two months. "There has been nothing at all," one shipper said. "No pumping, no loading, nothing." Exports were also hit by repeated bombings on an oil gathering centre in the north, an Iraqi official said. With exports out of northern Iraq sporadic, the country has had to rely almost entirely on its southern oilfields for shipments.


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