Home > IRAK : Attacks on oil installations cost billions of dollars
IRAK : Attacks on oil installations cost billions of dollars
by Open-Publishing - Wednesday 21 February 2007Wars and conflicts International Energy
By Mohammed Hameed
Azzaman, February 20, 2007
Iraq is losing up to 400,000 barrels of oil a day due to attacks targeting its oil infrastructure, a senior oil ministry official said.
Assem Jihad, the ministry’s spokesman, said at current high prices on international markets the loss is massive as it amounts to billions of dollars a year.
Jihad said there were 159 major attacks on oil installations in 2006, about one attack every other day.
Most of the attacks targeted the country’s pipelines, he said.
There were 116 attacks on pipelines mainly those leading to refineries or export terminals in the north.
“These attacks have forced the country’s refineries to operate at nearly 50% of capacity,” he said.
There is no special force to guard the pipelines and the ministry relies on Iraqi security forces which have been engaged in ferocious city fighting against rebels.
The government has earmarked $2.5 billion for the reconstruction of the oil sector this year.