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[casi] IRAQ; extra $800 to aid oil sector




http://tinyurl.com/glrr

AFX-Focus) 2003-07-11 00:17 GMT: US administration in Iraq seeks extra 800
mln usd to aid oil sector - official

BAGHDAD (AFX-ASIA) - The US civil administration in Iraq is requesting an
additional 800 mln usd from Congress to aid the recovery of the nation's oil
industry, taking the total cost to 1.2 bln, a senior coalition official
said.

The official said the administration is requesting the money to repair the
country's oil fields, considered the cornerstone for its revival.

Congress had already earmarked 400 mln usd to repair the fields, but faced
with
blown up pipelines, looting, and refineries and equipment in worse shape
than
previously thought, the US civilian administrator for Iraq Paul Bremer is
asking
an additional 800 mln, the official said on condition of anonymity.

The official added that the coalition aimed to pump out 1.2 mln barrels per
day
(bpd) by the end of the year and to more than double the figure to 3.0 mln
bpd
by next spring or early summer.

Oil is crucial to the coalition's plans for the country as Bremer is banking
on
Iraqi petroleum sales to generate 3.4 bln usd in the state coffers this
year,
which would pay for half of Iraq's 6 bln usd 2003 budget.

The official said plans are underway to collaborate on the 2004 budget with
the
Iraqi governing council, to be unveiled later this month, as the US-led
occupation tries to make Iraq into democracy after years of Saddam's
authoritarian rule.

Meanwhile, the coalition's military commanders are mulling the creation of
an
indigenous paramilitary force in Iraq to help shoulder the growing security
burden.

Lieutenant General Ricardo Sanchez said he is considering using tribal
forces to
help protect infrastructure which is under relentless threat of sabotage
from
Saddam loyalists.

"The key here is to close the gap between the police and the army, and we
believe that we can in fact stand up very rapidly some force that is in
between
those two ends of the spectrum that will allow us to get Iraqis beginning to
assume some of the responsibility for bringing security and stability."

Sanchez gave no timeframe for the creation of such a militia or indication
of
how large it would be.

Iraqi citizens, particularly in the capital Baghdad, have expressed outrage
at
the coalition's failure to provide a sense of security in the country in the
three months since Saddam's regime tumbled.



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