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.