Iraq rebels kill oil official, sabotage pipeline

IRAQ: Anti-US guerrillas trying to discredit Iraq's new interim government killed an Iraqi oil official and attacked foreign…

IRAQ: Anti-US guerrillas trying to discredit Iraq's new interim government killed an Iraqi oil official and attacked foreign contractors yesterday after sabotaging the country's oil export lifeline.

With the formal end to US-led occupation only two weeks away, the shadowy insurgents have intensified assassinations and suicide bombings to prove that the interim government cannot hope to assert control after the handover.

In the latest attack on Iraq's oil industry, saboteurs blew a hole in one of two southern oil export pipelines yesterday for the second time in 48 hours, an Iraqi oil source said. The damage was "fairly big", said the source.

The US Deputy Secretary of Defence, Mr Paul Wolfowitz, on a visit to Iraq which was shrouded in secrecy, met interim Prime Minister Mr Iyad Allawi and the defence and interior ministers.

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"The meeting discussed the strategy of the Iraqi government to deal with important and serious issues of security, the economy and the political process," a US statement said, without elaborating.

Mr Wolfowitz, a powerful advocate of last year's US-led invasion, escaped a guerrilla rocket attack on his hotel during an earlier visit to Baghdad, in October.

A rocket attack on a US base near Balad, north of Baghdad, yesterday killed two US soldiers and wounded at least 21 people, an American army statement said.

A bomb attack destroyed an Iraqi police car and a civilian vehicle carrying foreigners in the western city of Ramadi.

At least six Iraqis, including a policeman, were killed in the blast, a US marine spokesman said. Witnesses said foreigners were also believed to be among the casualties.

Gunmen killed Ghazi Talabani (70) a senior adviser in Iraq's North Oil Company, in the northern city of Kirkuk, in the latest of many attacks on Iraqis accused by insurgents of collaborating with the US-British occupation.

Police said Mr Talabani was shot as he was being driven to work. His driver was badly wounded. The gunmen escaped.

Mr Manna al-Ubeidi, a senior official of the company, said Mr Talabani, a second cousin of Kurdish leader Mr Jalal Talabani, was a popular figure who had refused to employ bodyguards.

An Iraqi official said all crude oil exports from southern Gulf ports had stopped after saboteurs hit pipelines feeding the Basra and Khor al-Amaya terminals this week. Sabotage had already stopped exports via a northern pipeline to Turkey.

Iraq was exporting over 1.6 million barrels a day of oil, its only independent source of revenue, and had hoped to match pre-war levels of some two million bpd by June 30th. Industry sources said repairs could take at least a week, costing Iraq nearly $60 million a day until deliveries resume.

As attacks surged elsewhere in Iraq, a radical cleric from the majority Shia sect in the sacred city of Najaf told his Mahdi army militiamen to go home, possibly signalling the end of his 10-week-old uprising against US-led forces. Sheikh Moqtada al-Sadr issued a statement ordering fighters to return home to "do their duty".

Sheikh al-Sadr agreed to a truce this month after weeks of fighting in Najaf and Kerbala. He was under pressure from senior Shia clerics opposed to the violence and shocked at damage to Shia Islam's holiest shrines.

The cleric said this week he would set up a political party, which could contest national elections to be held by January.

Iraq's interim president has welcomed that idea and even Mr Bush said he would not oppose it.

Sheikh Sadr's forces have been keeping a low profile in Najaf since the truce, under which US forces also agreed to pull back from the town and turn security over to Iraqi police.

Lebanese hostage Mr Habib Samour has been freed in Iraq after almost a month in captivity, Lebanon's national news agency said yesterday, citing Lebanese diplomatic sources in Baghdad.