Pentagon eyes $1.5 billion aircraft sale to Iraq

By Jim Wolf

WASHINGTON (Reuters) - The Pentagon has proposed selling to Iraq six Lockheed Martin Corp (LMT.N) C-130J cargo aircraft and related equipment and services valued at up to $1.5 billion.

Along with the six "Super Hercules" aircraft, the Iraqi government has requested 24 engines built by Rolls-Royce Group Plc (RR.L), the Pentagon's Defense Security Cooperation Agency said in a notice to Congress dated on Friday and made public Monday.

The Iraqi Air Force plans to use the C-130J to support its troops and for humanitarian relief operations, the congressional notification said. The estimated cost is $1.5 billion, the notice said.

"Purchase of new transport aircraft will provide Iraq with the ability to operate seamlessly with U.S., NATO and coalition forces engaged in all types of operations and missions," it said.

In a separate statement, the Pentagon notified Congress of a possible sale to Iraq of armored security vehicles valued at up to $206 million if all options are exercised. The contractors for this sale had not yet been determined, it said.

Such notifications of potential government-to-government arms sales are required by law. They do not mean a sale has been concluded.

(Reporting by Jim Wolf; Editing by Andre Grenon)