LEAD: Japan aims to benefit from Iraqi oil field development+

TOKYO, July 9 Kyodo -
(EDS: ADDING INFO IN 2ND-4TH GRAFS)
The Japanese government stepped up its efforts to benefit from Iraq's attempt
to attract foreign investment in its oil sector as the energy ministers of the
two countries met Thursday in Tokyo.

Visiting Iraqi Oil Minister Hussain al-Shahristani called for greater
investment by Japanese firms, while Japanese Economy, Trade and Industry
Minister Toshihiro Nikai pledged ''full support'' for such firms, government
officials said after the meeting.
Nikai's comment came as a group of Japanese firms led by Nippon Oil Corp., the
nation's largest oil wholesaler, is negotiating with the Iraqi government to
obtain the right to drill an oil field in the southern city of Nasiriyah.
The Japanese officials did not elaborate on further dialogues on the issue
between the ministers.
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 any 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.
Upon his arrival in Japan on Thursday, Shahristani reportedly told the media
that the Iraqi government will make a decision on the issue in two to three
weeks.
''I have no comment on any individual issue involving private-sector firms,''
Harufumi Mochizuki, Japan's vice industry minister, said earlier in the day.
But he added, ''We're now at a very important stage,'' referring to the
Japanese government's long-held goal of securing a stable oil supply.
==Kyodo