Iraq's oil industry in grip of despair By Peg Mackey
LONDON, Nov 29 (Reuters) - The present state of Iraq's collapsing oil sector, its economic lifeline, is bleak and its future looks far worse, despairing officials say.
Another damaging oil attack this week, the prospect of British troops handing over the oil city of Basra and virtual civil war have all but crushed hope for Iraqi officials battling to keep exports flowing to world markets.
"One thing is sure. The worst is yet to come," an Iraqi oil industry source said by telephone from Baghdad.
His task is made harder still by gross mismanagement at the oil ministry and chronic underinvestment in the vital sector -- already neglected for decades due to sanctions and wars.
"There is no line of authority at the oil ministry," said an oil official in the capital. "We are crippled. We have the resources and the finances and we are still failing...Our country may be dismantled -- farewell to central government. This is the danger."
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