IRAQ EYES TIE-UPS WITH MALAYSIAN FIRMS IN PROJECTS WORTH OVER US$1 BLN

KUALA LUMPUR, Feb 25 (Bernama) -- Members of the Iraq Business Federation are
keen to team up with Malaysian firms in projects worth over US$1 billion in the
pharmaceutical, foodstuff, power generation, hospitals and oil and gas sectors
in Iraq.

A member of the federation, Sabah Al-Shammery, said during the visit by the
federation's delegation to Malaysia from Feb 24 to March 4, potential projects
in palm oil would also be explored.

"Iraq requires US$2 trillion in investments within the next five to six years,
with US$600 billion in infrastructure and US$200 billion in the oil and gas
industry," Sabah said at a seminar on "Investment Opportunities in Iraq"
Thursday organised by the Malaysian Gas Association (MGA).

Sabah said currently, the major players in the upstream sector of the oil and
gas industry in Iraq included Malaysia and China while in the downstream sector,
UK and US were the major players.

He said the security situation has improved and the country needed new pipelines.

"Iraq has the capacity to produce 12 million barrels of oil per day in the next
five to six years," he said.

Sabah said Iraq expected economic development as it recovered from the crisis
due to consequences of war and occupation.

"In this respect, infrastructure development such as power generation and water
projects are required," he said.

Secretary general of MGA, Zenorai Rambli, said Iraq offered immense
investment potential in the oil and gas sector.

"Malaysian companies have been successful penetrating countries such as Sudan
and South America which are rich in resources despite security concerns," he
said.

Zenorai said the better economic outlook in the country would also help promote
opportunities for the oil and gas industry.
-- BERNAMA