The Iraqi oil ministry has announced long term plans in order to raise the level of oil production to 3.5 million b/d. A source at the ministry, said that the increase will be gradual and it will continue until 2007. He revealed that the cost for such plans is approximately US$4 billion. The source added, according to <i>Alkhaleej</i> newspaper, that the ministry also set a plan to increase liquefied natural gas production with the invitation of foreign companies to take part in the development of oil and gas fields.

The source clarified that the ministry is studying the option of reorganization the oil sector via the establishment of a national oil company as a governmental company that is financially and administratively independent, and integrate the current companies with it.