Petrel Resources - moderated discussion/research part II

Iraq hopes to produce 2.5 million barrels of oil day by end-2006
PARIS (AFX) - Iraq hopes to produce at least 2.5 mln barrels of oil a day by
the end of 2006 but will need significant foreign investment to reach that
target, Iraqi Finance Minister Ali Allawi told CNBC Europe television.
"We hope that in the process we'll be able to bring our production to a key
of at least 2.5-2.6 mln barrels by the end of 2006," he said, adding that "one
of the key elements in the 2006 projects is a significant expansion in
investment resources."
"We need to have substantial investments from international oil companies
because the level of investment required to bring up our production capacities
will be above our ability to finance [the increase]."
He stressed that Iraqi authorities had to make sure "our oil investment
policies are clear, transparent and ... set a clear guideline for any would-be
foreign investor."
Asked about measures to protect oil pipelines, he said: "I think 2006 should
be a year where stability and stabilisation will be realised in the country."
Iraqi Oil Minister Ibrahim Bahr al-Ulum earlier this month said the country
hoped to turn out 3 mln barrels a day by the end of 2006 and 3.5 mln by December
2007, compared with current production of about 2 mln barrels a day.
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