-Caveat Lector-

(No problemo, Sean, Halliburten will be glad to take US taxpayers debt to secure Iraqi
oil for Chevron. ;-(

Chevron Texaco sees 40 billion dollar bill to rebuild Iraqi oil industry Monday, 
08-Sep-
2003 9:57AM Story from AFP Copyright 2003 by Agence France-Presse (via ClariNet)



DUBAI, Sept 8 (AFP) - Modernising Iraq's oil sector will cost up to 40 billion dollars,
Peter Robertson, vice chairman of Chevron Texaco, said Monday.

"It will cost 30 to 40 billion dollars to bring Iraq's oil sector up to modern 
standards
and have a sustainable production rate of two to three million barrels per day (bpd),"
Robertson told the Middle East Petroleum and Gas conference in Dubai.

Robertson did not, however, give a timeframe for when Chevron Texaco expects Iraq to
reach such output levels.

The war-torn country's future oil revenues will not be sufficient to cover the cost of
rehabilitating the oil industry, Robertson said, "putting (the oil) industry in Iraq 
on a
stable footing and providing for its citizens to not be financed by oil revenues
themselves."

The US administration is struggling to meet the cost of reconstruction in Iraq. US 
civil
administrator Paul Bremer said last month that "several tens of billions of dollars" 
are
needed to rebuild Iraq's infrastruture.

Bremer said meeting Iraq's electrical demand alone would require two billion dollars 
and
12 months of work, while providing clean water would cost 16 billion dollars over four
years.

Iraq's new administration will be asking donors at a conference in Madrid at the end of
October to help foot the bill.

Cost estimates for rebuilding the oil industry have been spiralling upwards on almost a
daily basis as saboteurs and looters continue to target pipelines and other oil and 
power
facilities.

The attacks have severely limited Iraq's export capabilities particularly from the 
north
where the 1.1 million bpd Kirkuk-Ceyhan pipeline remains out of action following 
several
attacks.

In the south, exports in August were at 709,000 bpd, Mohammad al-Jibori, the director
general of Iraq's State Oil Marketing Organisation (SOMO), told AFP.

This is a far cry from the 1.1-1.2 million bpd of Basra light exported before the 
US-led
war. Iraq is hoping to boost the current output levels by the end of September but much
will depend on regular power supplies, Jibori said.

Output plummeted to around 200,000 bpd in the south last month following a massive 
power
cut in Basra and the surrounding area. The blackout played havoc with the loading
schedule for the recently signed term contracts with international oil companies.

Iraq is a member of OPEC but has not been included in its production quotas since
sanctions were imposed by the United Nations in the wake of the 1990 invasion of 
Kuwait.

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