Iraq concludes oil agreement with Indonesia

Iraq concludes oil agreement with Indonesia

Agence France-Presse, Baghdad

Iraqi Oil Minister Amer Mohammed Rashid and Indonesian Energy
and Mineral Resources Minister Purnomo Yusgiantoro here Tuesday
signed an oil exploration agreement.

The accord calls for Indonesia's state oil and gas company
Pertamina and the Iraqi oil ministry's oil exploration firm to
drill for oil and gas in an area of 10,000 square kilometres
(3,860 square miles) in Iraq's western desert, Rashid told
reporters.

"There is a strong chance of finding oil and gas in this
area ... This is a strategic project for both countries," he
said.

The two sides also signed a memorandum of understanding to
boost economic and technical cooperation between Iraq's oil
ministry and Indonesia's energy ministry, he added.

Yusgiantoro, who arrived in Baghdad on Monday, earlier held
talks with Iraqi President Saddam Hussein, the Indonesian embassy
said.

Heading a delegation of oil, gas and electricity experts,
Yusgiantoro also met with Industry and Mines Minister Muyassar
Raja Shallah, it said.

The Indonesian minister's visit came as Iraq renewed calls for
Arab and Islamic states to join a collective oil embargo to
protest Israel's military offensive in the West Bank and US
support for the Jewish state.

Iraq halted oil exports on April 8 for at least 30 days. But
Indonesia, the world's most populous Muslim nation and itself a
crude exporter, has already said it does not believe in use of
the oil weapon.