Oil Industry Takes a Heavy Toll in Iraq War

Baghdad, Oct 12 (Prensa Latina) Iraqi resistance attacks against local oil infrastructure cause yearly losses of up to 3 billion dollars, media close to the Iraqi oil industryreported.

Guerrilla operations against the network of conductors and stations in the north have
paralyzed the growth of oil extraction.

Sources of the Iraqi Oil Ministry said that facilities in southern Iraq have also been
severely affected.

The US and fledgling Iraqi government had planned to expand oil export operations to pay debts and finance contracts for the reconstruction of the country.

The Iraqi newspaper Al Sabah said Tuesday oil production had dropped in the second half of 2004 and the first half of 2005.

Other media highlight the lack of technological updating, which had been promised by the US government, but has yet to be fulfilled.

In September, Iraq produced 2.1 million barrels, and extended production to 2.5 million
barrels.

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