Iraq: Special Force To Protect Oil

posted by ewing2001 on Wednesday September 24, @04:59PM

US Plans Special Force To Protect Iraqi Oil

Reuters -September 24

WASHINGTON (Reuters) - The Bush administration plans to create a special force to protect Iraq's oil industry and to deploy a rapid-reaction team to repair pipelines after terrorist attacks.

The administration, according to documents obtained by Reuters on Wednesday, also plans to provide "continuous personal security" to Iraq's minister of oil and his director-generals.

"The life of one of the director-generals was threatened as recently as late August," the administration said in explaining the urgency of the $8 million request.

These and other oil-related initiatives were included in the White House's $20.3 billion reconstruction request for Iraq, which must still be approved by the U.S. Congress.

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President Bush was counting on Iraqi oil revenues to quickly finance postwar reconstruction.

But production has been far below the administration's expectations, forcing U.S. taxpayers to foot the massive up-front bill.

U.S. occupation authorities say Iraq could boost its oil output to 3 million barrels per day by the middle of next year if Congress approves $2.1 billion to rebuild Iraq's damaged oil industry.

According to the documents, the administration has drawn up a three-phase "work plan" of 200-plus oil projects, the third phase of which, it said, should be completed by March 2004.

U.S. occupation authorities expect their $575 million in proposed infrastructure repairs to help boost oil production by 20 percent, while new oil fields in the north and south would produce at least 250,v000 barrels per day of oil.

The administration said it also has plans for a new refinery that would process 70,000 barrels per day of oil for domestic use, reducing the need to import oil products.

"These investments will accelerate growth in Iraqi oil exports, and thereby shorten the period during which the Iraqi government will be reliant on international aid," the administration said.

Improving security is a major part of Bush's plan for the oil industry.

He is seeking $60 million to train and equip an "oil infrastructure security force," whose sole purpose will be protecting Iraq's oil facilities.

Current security is provided by a combination of U.S.-led forces and "an inefficient assortment of local security services," the documents said.

"Investments made to thwart (terrorist) attacks will certainly pay for themselves," they asserted.

U.S. occupation authorities are also seeking $55 million for a "quick reaction pipeline repair team" that would be dispatched to damaged pipelines within 96 hours after the site had been secured.

The Bush administration blames sabotage, looting and mechanical failures for causing "extended downtime on main pipelines" in Iraq.

It said failure to repair these pipelines has resulted in "significant lost revenues to the Iraqi people" -- as much as $7 million per day in the case of the Iraq-Turkey pipeline.

Bush's budget request includes the other oil-related proposals:

* $125 million to acquire "topping plants," which will be "placed strategically throughout Iraq (to) ensure quicker, cheaper, and more efficient delivery of refined products to the end users."

Topping plants are the first step in the process of converting crude oil to refined petroleum products. They can provide diesel, liquefied petroleum gas, and kerosene directly from crude in remote locations.

* $125 million to repair the Qarmat Ali Water Plant and cluster pump stations to "provide water injection for the southern Rumalia oil fields."

* $68 million to purchase 200 fuel tankers and 250 liquefied petroleum gas trucks to meet distribution requirements when pipelines go down.

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