The CPA's oil team and the ministry are understood to have defined a list of about 35 projects covering the upgrade of facilities and vital well servicing in many of the country's dilapidated fields. Several major field developments and upgrades to downstream facilities, which are currently being tendered by State Company for Oil Projects (SCOP), may also benefit from the allocation.

At present most of the work being carried out to rehabilitate the sector and boost output falls under the Restoration of Iraqi Oil (RIO) programme, which is being carried out by Kellogg Brown & Rootand Parsons International, both of the US. The new funding allocation is in addition to the RIO contracts that fall under the CPA's programme management office and its $18,600 million supplemental budget for reconstruction. Crude production is expected to increase to 3 million barrels a day (b/d) this year from about 2.5 million b/d at present.

Further details about the future structure of the Iraqi oil industry were due to be announced on 18 April at a high-profile oil conference organised by the ministry in Basra. However, the event has now been cancelled because of security concerns (MEED 12:3:04; Cover Story).