Thursday September 21, 2000  2:30 am


BAGHDAD, Iraq (AP) - Iraq on Wednesday renewed its accusation that
Kuwait has been stealing its oil, a charge that in the past week has
heightened tensions in the Persian Gulf region with its echoes of the
prelude to the 1990-1991 war.

The ruling Baath party newspaper, Al-Thawra, said in a front-page
editorial that Kuwaiti officials have ``implicitly'' acknowledged they
are stealing Iraqi oil by drilling wells that may stretch horizontally
to reach Iraqi reservoirs close to the border, ``depleting (Iraqi)
crude via this vicious method.''

``This (theft) cannot but be part of a series of provocations Kuwaiti
rulers have been practicing against Iraq,'' the paper said in the
editorial signed by editor-in-chief Sami Mehdi.

Kuwait has rejected the charges as an attempt by Iraq to destablilize
in the region.

Iraq's Oil Ministry officials, speaking on condition of anonymity,
claimed Wednesday that about 300,000 barrels of oil per day are
illegally pumped by Kuwait from Iraqi reservoirs through the practice
of horizontal drilling. At current prices, the volume should be worth
more than $3 billion a year.

Kuwaiti Oil Minister Sheik Saud Nasser al-Sabah said in a statement
that Kuwait would welcome independent experts to inspect its oil
operations in the border area with Iraq ``so that the falsity of the
allegations by the Iraqi regime can be revealed.''

In the same statement, Information Minister Saad Bin Tafla al-Ajmi
said Kuwait did not have the equipment needed for horizontal drilling.

Kuwait's ambassador to the United Nations, Mohammad Abulhasan, denied
any oil theft in letters sent to Secretary-General Kofi Annan and the
Security Council and circulated Wednesday.

Abulhasan, responding to accuations Iraq made Sept. 14, accused
Baghdad of ``trying to provoke crises and create an atmosphere of
tension and instability in the region'' and urged to world body to
enforce resolutions promising to ``to prevent Iraq from resorting to
threats and intimidation of its neighbors.''

Theft of Iraqi oil was one of the reasons Iraq gave for invading
Kuwait in 1990; a U.S.-led coalition force drove Iraq out seven months
later in the Persian Gulf War. Iraq resurrected the 10-year-old
complaint last week, along with a warning that it will take proper
measures to stop its neighbor's actions.

In addition to the oil theft charges, Mehdi accused Kuwait of allowing
the United States to conduct military exercises close to Iraqi borders
and providing refuge and financial help to Baghdad opponents.

Mehdi said Iraq cannot remain silent when faced with what he described
as Kuwait's ``flagrant aggressive actions.''

Meanwhile, the United Nations, which monitors Iraqi oil sales and
controls the income under the oil-for-food plan, said Iraq has
collected $5.1 billion since June 9, the start of the current oil
phase, which ends Dec. 5.

The U.N.-monitored program, renewed at six months intervals, permits
Iraq unlimited oil sales, enabling it to earn billions of dollars to
rebuild an economy devastated by wars and U.N. trade sanctions imposed
for its 1990 invasion of Kuwait.


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