Iraq PM reviews security in oil hub of Basra

By Wisam Mohammed

BAGHDAD (Reuters) - Iraqi Prime Minister Nuri al- Maliki headed to the strategically important southern oil hub of Basra on Monday to review security operations aimed at giving his government full control over the semi-lawless city.

Rival factions of Iraq's Shi'ite majority and criminal gangs are competing for control of Basra, Iraq's second city and gateway to the Gulf, along with its oil fields, which are the source of most of the government's revenues.

Government spokesman Ali al-Dabbagh said Iraq's interior and defence ministers had accompanied Maliki on his trip to "acquaint himself with military operations" in Basra.

"We will fight all the elements that are smuggling oil and threaten security. A comprehensive plan has been put in place to end the unacceptable situation that threatens Basra and Iraq's security," Dabbagh told Reuters.

Two of Iraq's most powerful Shi'ite factions, the Supreme Islamic Iraqi Council and followers of Shi'ite cleric Moqtada al-Sadr, and Fadhila, a smaller Shi'ite party, are fighting for power in Basra.

Criminal gangs are also vying for control of lucrative oil- smuggling routes at a time when Iraq, which has the world's third-largest reserves of oil, is trying to boost exports.

The central government is seen as having only nominal authority over Basra, which is controlled by Fadhila. The party quit Iraq's ruling Shi'ite alliance last year.

The Pentagon said in its latest report to the U.S. Congress that "competition between Shi'a parties and militants for local control continues to be the primary threat to stability in southern Iraq".