Iraqi oil close to pre-war levels

Revenue from crude oil is needed to rebuild Iraq

Iraqi oil output is close to pre-war levels despite continued terrorist attacks, a state official has told AFP.

Most of the production is coming from the south of the country where bombings are less frequent than in the north.

The country's interim administration has been criticised for failing to halt the attacks which have often targeted pipelines.

On Monday, an important gas pipeline was destroyed close to Kirkuk, hurting supplies to the largest oil refinery.

State oil

Production of crude is currently at 2.2 million barrels a day (b/d), Shamkhi Faraj, director of the State Oil Marketing Organization, told AFP news agency.

He said they hope to hit pre-war levels of 2.8 million b/d by March of next year.

Exports will also rise, climbing to between 2 million and 2.1 million b/d in March.

The price of oil has increased on the international market this year partly as Iraq's output slumped following the US-led invasion in March.

The Organisation of Petroleum Exporting Countries is mulling production cuts to offset an increase in Iraqi and Russian output.

Mr Faraj said Iraq would not need a large amount of investment to get to 3 million b/d.

The ministry expects production to reach as much as 4 million b/d by the end of 2005.