Malaysia's state oil company Petroliam Nasional Bhd (Petronas) said on Monday it was in talks with Iraqi officials about how it could help develop the country's war-battered oil industry. Petronas, already working in political hot spots such as Sudan, Myanmar and Iran, is expanding offshore as part of a long-term ambition to become a global industry heavyweight. "I think any oil and gas player cannot ignore Iraq," Chief Executive Hassan Marican said.
"It's a new source of investment and reserves. We have been active in Iraq in the sense that we have been in discussions with Iraq and we will continue to hold discussions with them on mainly the upstream," he told reporters at the annual AOGC oil and gas conference in Kuala Lumpur.
Mainly Muslim Malaysia opposed the US-led invasion of Iraq in 2003, but it did offer to help with reconstruction.
Oil companies are anxiously eyeing Iraq's giant oil reserves, the second largest in the world with 115 billion barrels, as output falls in mature areas, and other Middle East nations such as Saudi Arabia show little willingness for foreign investment.
Petronas and other companies such as Chevron and Total are providing Baghdad with limited technical assistance and training in hopes of a greater role in the future, but security and political concerns have deterred investment.
"Many giant companies are trying to work with our country and Iraq is inviting foreigners to come and invest," Riyadh Alani, head of international affairs at the Iraqi Oil Ministry, said at the same conference.
"We hope in the future Iraq will be able to establish security so they can develop the oilfields."
Iraq plans to invite international companies to develop 11 oilfields capable of more than doubling its output, the Oil Ministry's field development chief told Reuters on Monday.
Hazem Sultan also said in an interview that new information showed Iraq could add 100 billion barrels to its oil reserves as they are developed, although it would take two to three years to get supplies running from new fields.
Last week Iraq's oil minister said that crude exports would remain severely limited at just 1.5 million barrels daily until Baghdad could get foreign investors to boost output, a quarter less than it was shipping before the US invasion.
Iraq's northern and central pipeline networks were hit by 70 sabotage attacks that cost $1.25 billion in lost revenues in the first five months of this year.
In an interview on Friday, Iraqi Oil Minister Ibrahim Bahr al-Uloum said an overhaul of production and development of new fields needed major foreign oil companies. He said he hoped to sign deals by the end of 2006.
But even if Iraq's security situation improves enough to permit exploration and production by foreign firms, new projects would take time to come onstream.