The USS Thach, a guided-missile frigate assigned to Task Group Iraqi Maritime, is providing training and security at the Al Basrah oil terminal in the south of Iraq, the office of the secretary of defence has announced.

Navy commander David Haas, the ship's commanding officer, explained that Thach is stationed in the port to ensure that oil flows freely through the terminal, ensuring that revenue streams can enter the country uninterrupted.

"If that stops, up to 80 percent of their [gross domestic product] could go away and we cannot allow that to happen," he added.

The navy is also providing maritime training support to expedite the return of control of the port back to domestic authorities, commander Haas added.

In a further effort to boost national revenues, Iraq's oil ministry has announced that it will conduct a second round of bidding for oilfield production contracts by the end of the year, with deals expected to be completed by January 2010.

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