Iraq Suspends Oil Development Talks with Japanese Firms

The Iraqi government has suspended talks with a group of Japanese firms to develop an oilfield in Nasiriyah. The suspension of talks came ahead of the national parliamentary election in Iraq on 7 March 2010, with uncertainty growing over the country's position on whether to accept more foreign capital to develop its oilfields, Japan's Kyodo News Agency reported on 5 March 2010, citing an Iraqi official. The group led by Japan's top refiner Nippon Oil Corp. had been in negotiations with the Iraqi government to finalize the terms after reaching a principle accord in August 2009 for oil development rights in the southern Iraqi city. The senior Iraqi official at the Iraqi Oil Ministry also said that the Iraqi government may decide to conduct bidding, instead of holding direct talks with the Japanese group, according to the report.

Iraq has the world's third-largest proven crude oil reserves. A deal in Nasiriyah would be the biggest of its kind for Japanese companies. A Nippon Oil official stressed that the talks have been only suspended, not broken down, the report said. Japanese Economy, Trade and Industry Minister Masayuki Naoshima on 5 March 201q0 admitted that there has been no major progress in the talks. But he also told reporters, "I understand the negotiations are still going on." Naoshima added that too much information comes out due to the election campaign. "We'll make a proper decision after seeing the (election) results," the minister said. - QNA