Jul. 9--TOKYO -- The Japanese government will step up its effort to benefit from Iraq's attempt to attract foreign investment to its oil sector as the energy ministers of the two countries are to meet Thursday evening in Tokyo.

Government officials have said the purpose of the meeting between Iraqi Oil Minister Hussain al-Shahristani and Japanese Economy, Trade and Industry Minister Toshihiro Nikai is to deepen bilateral friendship. However, speculation is growing that Tokyo has moved to support a bid by some Japanese companies to develop one of the oil fields in Iraq.

The ministerial meeting comes as a group of Japanese firms led by Nippon Oil Corp., the nation's largest oil wholesaler, negotiates with the Iraqi government to obtain the right to drill an oil field in the southern Iraqi city of Nasiriyah.

Iraq, which has the world's third-largest proven crude oil reserves, is trying to attract foreign investment in a process seen as crucial to the future of the war-torn country.

Last month, a consortium led by BP plc of Britain and China National Petroleum Corp. won a contract to develop Iraq's Rumalia field, agreeing to Baghdad's terms, but other fields failed to attract bids that could meet the conditions.

As for the Nasiriyah field, Iraq has not conducted bidding, allowing the Japanese alliance and Italian energy firm Eni S.p.A. to directly negotiate with the Iraqi government. The Japanese alliance also involves oil explorer Inpex Corp. and engineering firm JGC Corp.

"I have no comment on any individual issue involving private-sector firms," Harufumi Mochizuki, Japan's vice industry minister, told reporters. But he also said, "We're now in a very important stage," referring to the Japanese government's long-held goal of securing a stable oil supply.

-----

To see more of Kyodo News International, go to http://www.kyodonews.com

Copyright (c) 2009, Kyodo News International, Tokyo

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

5001, 1604, 1963, E, ENI, BP, 5051,

A service of YellowBrix, Inc.