Iraq's crude oil production from its southern oil fields has slipped by 100,000-150,000 barrels a day over the last six months as maintenance problems and a lack of investment undermine the country's output capacity, an oil industry source from Basra said Wednesday.
"Production from the south is declining," the source told Dow Jones Newswires by telephone from Basra.
Production from southern oil fields, which makes up 70% of the country's total output, has fallen to 1.7 million-1.75 million barrels a day since August 2008, compared to 1.85 million-1.9 million barrels a day throughout 2007 and the first seven months of 2008, the source said.
"Production decline is caused by lack of reserve maintenance and investment," he said.
However, the South Oil Company, which operates southern Iraqi oil fields, is planning to raise output by up to 400,000 barrels a day in two to three years time, he said.