Originally published by the Voice of America (www.voanews.com).
Voice of America is funded by the US Federal Government and content it
exclusively produces is in the public domain.
April 25, 2007

Asian Countries Hope to Win Oil Contracts in Iraq
-------------------------------------------------

http://enews.voanews.com/t?ctl=17352C8:A6F02AD83191E160A3284997840AF05F9574F7DCC14957C0 China, India,
Vietnam, South Korea hope to be among first to sign contracts to
explore world's third largest oil reserves As Iraq is debating a new
law that will set guidelines under which authorities can negotiate
with foreign oil firms, several energy-hungry countries in Asia hope
to be among the first to sign contracts to explore the world's third
largest oil reserves. Claudia Blume at VOA's Asia News in Hong Kong
reports.

By the end of this month, the Iraqi parliament is expected to decide
on a new oil law. If passed, the legislation will allow Iraq to sign
contracts with foreign companies for the exploration and production of
the country's vast untapped reserves.

Some energy-hungry countries in Asia - such as China, India, Vietnam
and South Korea - are hoping they will be among the first to take
advantage of the new law. Iraq, in urgent need of foreign investment,
is actively courting countries in the region.

Earlier this month, Iraq's Prime Minister Nuri al-Maliki visited South
Korea and Japan and invited investment in his country's
reconstruction, including the oil sector. Iraqi and South Korean oil
ministers signed a memorandum of understanding to cooperate in the
development of Iraqi oil fields.







Employees work at Sheaiba oil refinery, west of Basrah, Iraq
(File)Tokyo pledged a loan of more than $850 million for the building
of an oil export facility in Basrah, as part of a wider aid package
for Iraq.

Clara Tan is an energy sector analyst with Singapore-based Energy
Intelligence. She says Japan hopes its generous aid pledges will be
rewarded with access to the country's oil reserves.

"I think part of that is - I will give you access to my energy sector
and I hope that you will help me in terms of financing loans or in
terms of technology expertise," Tan saidl

Some analysts think Iraq's first foreign contract to develop oil
resources may not go to American and British oil companies but to
China, a country that sat out the Iraq war.

Clara Tan says Beijing is discussing the revival of an oilfield deal
it signed in the midst of U.N. sanctions that barred direct dealings
with Iraq's oil industry.

"China has a contract signed a few years back under the old regime
under Saddam Hussein," she said.  "Now they are looking at
renegotiating the contract, so talks have been going on for some time,
so they have visited China and China has come to Baghdad to talk to
them on the renegotiations."

Iraq's tense security situation is one of the biggest obstacles for
foreign companies wanting to explore the country's oil fields.

But some experts say China might have an edge over other countries
because its oil companies are so desperate to find new energy sources
that they may be willing to take more risks than others.


.