US prepares second stage of oil management contracts

06 June 2003
The US' Department of Defence (DoD) and the US Army Corps of Engineers (USACE) are close to announcing new contracts for the nest stage in the rehabilitation of Iraq's oil infrastructure.

'Right now we are very close to finalising our acquisition strategy in relation to Iraq's oil infrastructure,' a spokesman for the USACE said. 'With something as significant as Iraq it has to go back and forth between the USACE and the DoD but we have sent back what we think will be our final draft to the DoD and it is under review. It could be issued inside a month though there is no certainty about that.'

The acquisition strategy sets out the medium objectives for the oil industry and the way in which they will be delivered, including the number and scope of oil management contracts, when and how they will be issued, and what the key milestones will be.

The USACE spokesman said he was unable to comment on reports that there could be two main management contracts issued, one for Iraq's northern oil fields and the other for the southern fields. 'I cannot say whether it will be one contract or multiple contracts. That is all part of the strategic review, which has still to be finalised,' he said.

The US' Kellogg Brown & Rootis carrying out the first-phase reconstruction of Iraqi oil infrastructure, covering fire-fighting and emergency repairs (MEED 28:3:03).

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