Iraq oil pipeline to Turkey sabotaged...

This shows that insurgents are still active and able to cause economic damage although it seems that the flow will be stopped only for a few days. There is still no oil law in Iraq as a whole but Kurdistan has its own oil law and has signed a number of agreements that are not recognised by the federal government.

Iraq oil pipeline to Turkey sabotaged-engineer
Wed Oct 28, 2009 8:08am EDT

KIRKUK, Iraq, Oct 28 (Reuters) - The Kirkuk pipeline that takes crude from northern Iraq to the Turkish port of Ceyhan was damaged on Monday morning by an explosion caused by "sabotage action," an engineer with Iraq's North Oil Company said.

Iraq is trying to rebuild its oil infrastructure after years of war, sanctions and strife, and is working on deals with oil majors that would substantially boost output in a nation with the world's third largest crude reserves.

The engineer, who asked not to be identified, said the blast happened near Mosul, a volatile city still suffering frequent attacks by insurgents 390 km (240 miles) north of Baghdad.

In September, exports from Iraq's Kirkuk fields through the northern pipeline to Ceyhan were at 490,000 barrels per day, according to Iraqi officials.

Trading sources in London said that flows might resume as early as later on Wednesday. "It stopped pumping two days ago," said one of the sources. "It might start again this afternoon." (Reporting by Mustafa Mahmoud; Writing by Ahmed Rasheed; Editing by Michael Christie)

© Thomson Reuters 2009 All rights reserved


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