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Thursday March 20, 2003 17:34
by G Langtry
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Jump To Comment: 1Iraq denies oil wells set alight near Basra
Iraqi Oil Minister Amir Muhammed Rasheed has denied reports that oil wells near the southern Iraqi city of Basra were on fire.
Kuwait television earlier reported that several oil wells near Basra had been set alight by Iraqi troops, while Iranian media have reported US jets bombing these oilfields.
"This report that was given to you is a film from the American gangs and is misleading and prejudiced," Mr Rasheed said in a statement from his Baghdad office.
The reports from Iran and Kuwait, which have both waged war against Iraq, were not independently confirmed. Iraqi state- run media has made no mention of any oil well fires in Basra.
A US official said earlier this month that Iraq had placed explosives at the Kirkuk oilfields in northern Iraq to prevent them being taken over in the event of a US invasion. This was denied at the time by the Iraqi Oil Ministry.
US Energy Secretary Spencer Abraham said in a statement today: "At this time, we do not know the extent of the damage to Iraqi wells or how many wells are currently affected by the regime's orders."
The oilfields of southern Iraq pump about half of the country's 2.5 million barrel per day output, which ranks it as the seventh largest oil exporter. The southern region also holds most of Iraq's untapped reserves, which rank second in the world to Saudi Arabia.
Exports of Basra Light crude oil from the Iraqi Gulf port of Mina al-Bakr have been stopped since Monday after United Nations oil inspectors were evacuated.
Fires at Iraqi oil wells are the nightmare scenario for world oil markets and could drive prices sharply higher if confirmed.