Iraq Oil Exports, Output Unaffected By Fighting

March 26, 2008 (Dow Jones Newswires)

Iraq's crude oil production and exports from southern oil fields in Basra and nearby provinces haven't been affected by the fighting between the Iraqi army and armed groups, a senior oil official in Basra said.

"So far production from southern oil fields and exports of crude oil from southern oil terminals are running normally," the official told Dow Jones Newswires by telephone from Basra.

He said disruption to production and exports could only occur if gunmen blow up crude oil pipelines.

The headquarters of the South Oil Company, which manages Iraq's southern oil production and exports, oil installations and oil fields, are protected by the Iraqi army.

Iraq exports the bulk of its crude oil from its southern oil terminals a few kilometers from Basra, where much of the fighting is taking place. Exports from these terminals are between 1.5 million to 1.6 million barrels a day.

Clashes began in the southern oil hub on Tuesday after Baghdad ordered a crackdown on militia in the city.

March 26, 2008 (Dow Jones Newswires)