Monday, October 09, 2006

Iran to restart kerosene shipments to Iraq

Generators, like this one at a Baghdad hotel, are essential for consistent electrical service.

BAGHDAD, Oct. 9 (UPI) -- Iran has resumed sending tankers of kerosene across the border to Iraq after halting shipments because of security concerns.

Khamis Safi, spokesman for Iran's embassy in Baghdad, said the shipments would be restarted because of Tehran's commitment to the future of Iraq, the state-run Islamic Republic News Agency reports.

Safi said Iran intends to fulfill a deal it struck to provide oil products to Iraq, which was stalled by ongoing and increasing security issues in Iraq.

The "Islamic Republic of Iran has transported 8,000 tankers carrying fuel to Iraq," said Safi. "But Iraq's Oil Ministry has recently declared that due to Iranian side's suspension of implementation of the agreements, it will sign agreements with other countries and companies to import kerosene."

Asem Jihad, an Iraqi Oil Ministry spokesman, said going to other countries for its oil needs doesn't violate the deal with Iran.

Kerosene itself is being used much more in Iraq as violence hampers reconstruction efforts already rampant with alleged graft.

Electricity is unreliable and seldom on throughout the most of the country, forcing customers to run inefficient power generators using kerosene.

Read the rest at Reuters

Related Link:
Report: Iraq oil industry in $16 billion shortfall over last 2 years