U.N.: Iraqi oil production capacity falling

A report by United Nations inspectors has shown that Iraqi oil production capacity continues to decline, at a rate of 4-8%/year, with a significant number of wells shut in recently because of a lack of water removal facilities. In a letter to the president of the U.N. Security Council, U.N. Sec. Gen. Kofi Annan said the experts estimated that about 20% of Iraq's wells shut in because of water production are irreparably damaged. The remainder of the shut-in wells could be returned to production with imported spare parts, to recover production capacity of about 100,000 b/d. Spare parts could enable Iraq to boost oil production capacity over 6 months. Rehabilitation prog...

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