BP PLC (BP.LN) has halted output from the southern half of the giant Rumaila oil field in Iraq after a bomb blast hit pipelines in the area late Tuesday.

"We've been asked to curtail production while the export pipeline is repaired. All our staff and operations at Rumaila are safe," said a BP spokesman Wednesday.

Production at Rumaila, which is subcontracted to BP and China 's CNPC, is estimated to be around 1.4 million barrels a day. Stopping output at Rumaila South would imply a loss of around 700,000 barrels of oil a day.

However, the spokesman said that the impact on BP from any lost production would be "minimal." The company operates the field under a technical services contract, which allows it to recover a renumerated fee of $2 a barrel in profits in return for boosting output.

The spokesman said he didn't know when production would resume.

The attacks came as U.S. troops withdraw from the country by Dec. 31, raising the specter of renewed instability. The country's oil infrastructure was heavily targeted by militants following the U.S. invasion in 2003 but acts of sabotage had declined in recent years as the security situation improved.
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