Iraqi oil company torched in Basra

The assault late on Thursday evening in the southern city of Basra came after the attackers had threatened to sabotage Iraq's crucial oil infrastructure to protest the ongoing clashes pitting armed fighters against US and Iraqi forces in Najaf.

The fighters held drilling equipment and other gear, to the ground. The fire then spread to the company's offices.

No change in exports

Meanwhile, an oil official at the company said Iraq's oil exports are still flowing at one million barrels per day through southern terminals despite the attack.

Exports have been running at one million bpd, or half of normal, since saboteurs attacked one of two pipelines feeding the offshore terminals on 9 August.

http://english.aljazeera.net/NR/exeres/A2C1327B-CFED-4064-B7DE-FAA8D7C99A5B.htm

Oil company HQ ablaze in Basra
Thu 19 August, 2004 20:10

BASRA, Iraq (Reuters) - Saboteurs have set the headquarters of Iraq's South Oil Company in the city of Basra on fire, officials and witnesses say.

"It was not an accident. The fire is huge," said an official of the state-owned company, who declined to be further identified on Thursday.

A Shi'ite militia led by anti-U.S. cleric Moqtada al-Sadr had threatened to attack oil infrastructure in southern Iraq if U.S.-led forces continued assaults on the holy city of Najaf.

The south accounts for all of Iraq's oil exports as sabotage kept a northern pipeline through Turkey mostly shut since the U.S.-led invasion.

Exports through two southern terminals have been almost halved to around one million barrels per day since a main pipeline in the region was attacked on August 9 and flows were restricted to a smaller pipeline.

http://www.reuters.co.uk/newsPackageArticle.jhtml?type=worldNews&storyID=568398§ion=news

Oil prices soared yet again overnight following increased violence in Iraq with traders fearing such violence will cut Iraqi exports more. Iraq's South Oil Company's office in Basra was attacked by militia , looted then set ablaze. Supporters of Cleric al-Sadr also said they would set oil wells alight if US forces did not stop attacks in Najaf. Iraq's oil exports from the south are already at half or 1 million barrels per day due to attacks on pipelines. This latest price increase is again on fears of supply disruption rather than actual disruption.

Singapore prices were firmer with futures during Asian trading yesterday as well as aggressive swap bidding despite a lack of buying interest in physical cargoes. Expect Singapore prices to be up $1.20/bbl today.

Closing Prices Thursday August 19,2004:

WTI Sep $48.70/bbl +$1.43/bbl (contract expires tonight)
WTI Oct $47.64/bbl +$1.29/bbl
Brent Oct $44.33/bbl +$1.30/bbl
IPE Gasoil $398.00/t +$6.25/t = +$0.84/bbl
MOPS Kero $54.425/bbl +$0.50/bbl

http://www.channelnewsasia.com/cna/finance/markets/companywatch/article/20_20040820cao171.htm