Oil Export Income Up.

Oil Ministry figures on April 24 showed Iraq boosted its crude oil exports by 3.3m barrels in March over the previous month. Total crude oil exports in March stood at 59.4m barrels and grossed $5.64 bn, with an average price $95.02/b. February exports hit 56.1m barrels and yielded in $5.037 bn. January's amounted to 59.6m and brought in $4.813 bn. There is still a wide difference in exports between Basra and Kirkuk, despite fighting in the south last month which included attacks on the southern export pipeline. Ministry figures showed 49.5m barrels were sent abroad through Basra while 9.9m barrels were exported from the Kirkuk oilfields to Turkey's Ceyhan terminal on the Mediterranean.

On April 23, the US Inspector-General for Iraqi Reconstruction, Stuart Bowen, released new data on oil income which showed the government could reap $70 bn. This is giving more leverage to US lawmakers who complain that Iraqis are not paying enough of the bill for rebuilding their country - in view of rising oil production and prices.

US Defence Secretary Robert Gates on April 22 met privately with Senate Armed Forces Committee Chairman Carl Levin, where the ranking Democrat said he would raise the issue of spending in Iraq. Gates flew into Baghdad on April 24 and talked on this and other issues with Iraqi leaders, warning them that Congressional pressures of them to raise spending on reconstruction will be mounting not only during the coming months - ahead of the US presidential elections - but also beyond January 2009, when President Bush will leave the White House.

Bowen said figures from Iraq's government showed revenue from exports hit $5.83 bn in December - more than $1 bn over what was previously reported by Baghdad. It compared to $2.4 bn in January 2007 and $3.3 bn in July. Bowen said the latest data "clearly substantiate...that Iraq is enjoying a record windfall as the result of record oil prices, record oil production and record oil exports".

The new figures came as Bowen prepared to release the latest of his quarterly reports, in which he audits a $48 bn US reconstruction programme which has made mixed headway towards restoring basic services and getting Iraq's economy on track. Bowen said the report will show post-war records set early this year for both oil production and export.

Before his meeting with Gates, Levin said he will try to push legislation to prohibit US money from being spent on reconstruction and possibly other war-related costs in Iraq. Republican lawmakers have signalled a willingness to back a measure on spending, depending on how it is written. Republican Sens Susan Collins, Bob Corker and Judd Gregg have proposed separate legislation which calls for Iraq or its neighbours to pay more for reconstruction.

Other lawmakers have suggested restricting future reconstruction dollars to loans instead of grants and asking Baghdad to pay for the fuel used by US troops as well as take over US payments to predominantly Sunni tribal fighters in the awakening councils (ACs) which have pushed Neo-Salafi insurgents out of their areas.

Iraq's Ambassador to the US Samir Sumaida'ie on April 23 assured members of Congress that Iraq was doing what it could, saying: "I assured them that the Iraqi government was not only willing, was actually stepping up and taking (on) as much of the financial cost of reconstruction as possible. And we're doing it as fast as we can".

Iraq's 2008 budget is about $48 bn with some 84% coming from oil. That was calculated using a $57/b price. Along with the $48 bn appropriated by Congress for reconstruction since 2003, Iraqis have budgeted $50.6 bn and international donors have pledged another $15.8 bn. Though Iraqis have budgeted the money, they have a poor record of actually spending it. US officials say that is largely because they lack expertise in budgeting and financial management. Political considerations have tainted the way money is handled. So has theft, fraud, skimming and other corruption which Bowen once said amounted to a "second insurgency".