A senior official at the Iraqi oil ministry announced that the ministry is preparing long term plans to increase the level of oil production to 3.5 million b/d. The official noted that the cost of implementing of these plans would be US$4 billion, and that the production increase will be gradual. According to the plans, it will be achieved by 2007.
The source clarified, according to <i>Alahali</i> newspaper, that the ministry also set plans to increase the production level of liquefied natural gas (LNG) with the cooperation of leading foreign companies.
It should be recalled that the Iraqi oil ministry is currently studying the option of restructuring the oil sector via the inception of the National Oil Company as a governmental company that would be administratively and financially independent and merge the existing companies within it.
© 2005 Mena Report (www.menareport.com)
