Iraq's oil exports increased to an average of 1.6 million barrels a day last month, the oil minister said Monday.

Ibrahim Bahr al-Uloum said Iraq's crude exports amounted to 1.44 billion barrels a day during June. He said Iraq earned about $2.5 billion from oil sales abroad last month.

According to The AP, the minister added the country, which lacks enough refineries, is spending $300 million to import refined oil products to face fuel shortages.

In July, Iraq imported 3.25 million gallons a day to meet growing demand, and hopes to produce 3.25 million gallons of gasoline a day by the end of August, Bahr al-Uloum said.

The Oil Ministry has invited bids to build a new $1 billion refinery south of Baghdad with a capacity of 140,000 barrel a day, he said.

© 2005 Mena Report (www.menareport.com)