U.S. report: old Iraq southern oil pipelines could break

Pipelines vital to Iraq’s oil industry are in such poor condition they could rupture at any time, choking off the supply of oil from the region and devastating the country’s economy, Daniel Dombey and Carola Hoyos report for the Financial Times. A previously undisclosed notification to the US Congress says the ageing underwater pipelines, which link storage facilities near Basra to offshore tanker fueling terminals, are in urgent need of back-up or repair.

The Iraqi Kurdish region denies reports that Norwegian firm DNO received the OK to begin exporting oil, prompting speculation of a broad political deal, United Press International’s Ben Lando reports. The Tuesday report pushed DNO shares up 54 percent, though the company says no permit has been granted. Export rights also hinge on political progress. "When we are ready to export, we will export," said the Kurdistan Regional Government's Minister of Natural Resources Ashti Hawrami. He refused to respond to the claims, giving only basic details on how the KRG does oil business. He said the way contracts work, the operator must be technically capable of entering Iraq's export routes -- in this case, tying into the northern pipeline to Turkey -- and then apply for a permit.