The ROM provides a cost breakdown and timeline for US plans to restore Iraq's crude production from an assumed 1 June level of 1.1 million barrels a day (b/d) to the pre-war level of 3 million b/d by 31 December. Of the $1,678 million total, $980 million is required to restore operating systems such as pumping stations, refineries and pipelines, and $500 million is needed for temporary repairs, the import of liquefied petroleum gas (LPG) and benzene and the cost of the US oil operation.
The report only covers work needed to refurbish the oil infrastructure rather than upgrade or expand it. This includes provision of equipment to support the Baiji Refinery turnaround, expected by October, and a number of related major projects. These include crude, natural gas, LPG and refined products pipelines over the Tigris at Al-Fatah bridge. It also includes an interim pumping station and water supply to the southern oil fields. The supply of out-of-stock materials such as spare parts, chemicals and additives for an initial six-month period are also priced in the report.
The report says the restoration of Iraq's oil infrastructure should be done in two phases. An initial phase will include temporary repairs needed for production to return to pre-war levels. The second phase involves 'sustainable repairs' to sustain production at 3 million b/d. This includes new drilling rigs, pump and compressor station facilities and refinery buildings and pipeline rehabilitation.
USACE said on 9 July that $489 million is to be transferred from the US Iraqi Freedom Fund to a new Natural Resources Restoration Fund, created by Congress in a Supplemental Appropriation Bill earlier this year, to support the reconstruction. USACE added that it did not know when additional funds would be made available, but warned that delays in finding extra funds would delay the restoration project. It also warned that continuing sabotage of oil infrastructure could significantly add to the work required. The ROM report estimates that looting is costing the Iraq oil industry about $95 million a week.
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