Iraq needs to invest $12-20 bln to up oil output-min

ISTANBUL, June 9 (Reuters) Iraqi Oil Minister Hussain al-Shahristani said on Friday his country needed investment of billion to billion to raise its oil production to six million barrels per day (bpd).

''Iraq needs -20 billion of investment to raise oil production to six million barrels per day from two million now by 2012, which means ISTANBUL, June 9 (Reuters) Iraqi Oil Minister Hussain al-Shahristani said on Friday his country needed investment of $12 billion to $20 billion to raise its oil production to six million barrels per day (bpd).

''Iraq needs $12-20 billion of investment to raise oil production to six million barrels per day from two million now by 2012, which means $2-3 billion of investment a year,'' Shahristani told a Turkish-Arab economic conference.

Iraq owns the world's third largest proven oil reserves but the sector has been undermined by war, sanctions, lack of investment and mismanagement.

Oil multinationals eyeing Iraq's giant largely undeveloped oilfields, are waiting until a new investment code with a legal and regulatory framework is in place, before they venture in.

Shahristani, who took office last month, said he did not expect world oil prices to fall below the $40-45 a barrel level to the end of the decade and beyond.

Oil rose towards $71 on Friday as Iraq's oil sector continued to look vulnerable despite the death of a top al Qaeda leader. Prices were also also supported as tensions reignited between the West and Iran.

U.S. crude oil rose 35 cents to $70.70 a barrel by 1030 GMT, trimming this week's losses of around 3 percent. London Brent crude jumped 60 cents to $69.65 a barrel.

Shahristani told Reuters on Thursday Iraq's oil exports in June would be around 1.6 million bpd. Iraq exported an average 1.5 million bpd in May, according to shipping sources.

REUTERS PV PM1703 -3 billion of investment a year,'' Shahristani told a Turkish-Arab economic conference.

Iraq owns the world's third largest proven oil reserves but the sector has been undermined by war, sanctions, lack of investment and mismanagement.

Oil multinationals eyeing Iraq's giant largely undeveloped oilfields, are waiting until a new investment code with a legal and regulatory framework is in place, before they venture in.

Shahristani, who took office last month, said he did not expect world oil prices to fall below the -45 a barrel level to the end of the decade and beyond.

Oil rose towards on Friday as Iraq's oil sector continued to look vulnerable despite the death of a top al Qaeda leader. Prices were also also supported as tensions reignited between the West and Iran.

U.S. crude oil rose 35 cents to .70 a barrel by 1030 GMT, trimming this week's losses of around 3 percent. London Brent crude jumped 60 cents to .65 a barrel.

Shahristani told Reuters on Thursday Iraq's oil exports in June would be around 1.6 million bpd. Iraq exported an average 1.5 million bpd in May, according to shipping sources.

REUTERS PV PM1703