"The pipeline was attacked and damaged Tuesday," the official told Dow Jones Newswires by telephone from
The attack took place in the section of the pipeline connecting the oil-rich city of Kirkuk to the Baiji, home to Iraq's largest oil refinery.
The official said the pipeline blast was "catastrophic" as it caused huge quantities of crude oil to spill into the Tigris River.
It isn't known yet how long it will take the Iraqi authorities to repair the damaged pipeline.
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The agent expected damage to the pipeline to delay or cancel a tender announced last week by the country's crude oil marketing arm, SOMO, to sell 5 million barrels.
The storage facilities at Ceyhan now contain 6.7 million barrels, but
Two vessels were waiting to load 1.7 million barrels from Kirkuk crude in the storage facilities at Ceyhan Wednesday, he said. One belongs to Spanish refiner Cepsa and the other to U.S. oil major ExxonMobil Corp. (XOM), he added.
SOMO awarded last week the 4.68 million barrels of Kirkuk crude oil in a tender to four companies. The crude must be lifted from Ceyhan before
"How can we continue with the new tender if the pipeline is stopped?," a source at SOMO said.
The latest incident hits Iraq's Oil Minister
Persistent acts of sabotage to that pipeline have shut down Iraq's northern oil exports for most of the time barring a few days since the U.S.-led invasion.
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