US' Bodman says no US oil companies willing to enter Iraq now

London (Platts)--18Jul2006

US energy secretary Samuel Bodman said Tuesday that US companies were not
interested in entering Iraq before the security situation improves and a new
hydrocarbon law is passed.

Bodman, speaking at a news conference in Baghdad after talks with oil
minister Hussein al-Shahrestani, said this was the message he got from senior
US oil executives he has spoken to.

"We are interested... there are a lot of reserves there but we cannot
think about investing. We want a more secure environment and the establishment
of a hydrocarbon law. Both are required. Both are necessary," Bodman said at
the news conference, monitored from London.

Bodman said that he hoped the hydrocarbon law that would be in place by
the end of the year, allowing Iraq to attract foreign investment to increase
is oil production capacity. But he said he believed an Iraqi target of
3 million b/d by the end of the year was optimistic.

"I believe that the minister talked about 3 million before end of year.
That may be a bit optimistic but there is great opportunity there," said
Bodman.

While the draft hydrocarbon law made clear that Iraq's resources belong
to the nation, the role of regional governments in future developments was
rather vague and needed clarifying, he added.

The proposed law "leaves open question of whether regional governments
will play a more active role with respect to new discoveries. It is that which
needs clarifying," said Bodman.

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