Iraq spending lot, gaining little

Press, 20 October 1987, Page 23

Iraq spending lot, gaining little

By

ASHRAF FOUAD

NZPA-Reuter Bahram Iraq is spending a lot of money to gain very little in its attacks on Iran’s oil lifeline, shipping sources in the Gulf region say. Defence budget figures show Iraq spending about SUS4O million a day on its seven-year war with Iran while Tehran still earns more than SUS2O million a day from oil exports. Since October 1, Bagdad’s jets have made 12 confirmed raids on tankers. "But it is costing Iraq a lot of money and Iran is still pumping oil as usual,” one shipping source said. Iraqi pilots fly impressive missions, sometimes 600 miles south to Iran’s Larak oil terminal at the Gulf entrance, to hit what was once considered a safe export facility.

Recently they hit the world’s largest vessel afloat, the 564,739-ton Seawise Giant and set the 256,263-ton Shining Star ablaze when they attacked five tankers at Larak. Such raids shake Iran’s military reputation but experts say they are very expensive and most tankers are back in action after a few weeks. Tankers which have been hit several times still show up at Iranian terminals. The shipping sources say Tehran pays up to 5U525.000 a day to charter tankers, double the going rate. Military experts say one of the French-made Exocet missiles which Iraqi warplanes use costs about SUSI. 3 million. Six missiles hit three of the ships Iraq attacked in a recent six day period. One ex-

ploded on each and others lodged on board the ships with warheads intact. "That is more than SUS 6 million right there,” one source said. Repairing the ships usually costs much less. The Japanese-managed Tomoe 8, hit recently, will cost about SUSIOO.OOO to repair. “It cost the Iraqis about three million dollars to hit it,” the shipping source said. One Exocet ripped a metre-wide hole in the ship’s side. Another found unexploded near the auxiliary boiler was later defused and removed. But the Shining Star was a total loss. "It was on fire for more than 34 hours and there is no way they can repair it. It would cost a few million dollars and they

are better off collecting the insurance money,” the source said. Shipping sources also said that Iran often shoots down expensive Iraqi jets, but Bagdad’s military bulletins routinely state “all our planes returned safely to base”. Recently the United States Navy plucked an Iraqi pilot from the Gulf after Iran downed his aircraft. Iraq had earlier denied losing any planes on that particular raid. • Iraq can also expensively attack a wreck. A shipping source who does business with Iranian ports said burnt-out tankers were not removed from terminals. "Iran leaves them there as dummies for Iraq to waste a missile or two on them,” he said.

Iraq attacks oil facilities at Kharg Island’s main terminal in the northern Gulf and industrial sites deep into Iran in its attempt to halt the oil revenue that fuels Iran’s war effort. Yet despite the almost daily Iraqi raids, Iran has managed to export well over two million barrels per day in the last three months. It has also increased its fleet of shuttle tankers carrying oil from the war zone to customers outside the Gulf. Shipping sources estimate that six have been hit, but about 20 are still sailing. Iran also has about 12 "mothertankers” moored off Larak and Kharg and operating as floating terminals.