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Page last updated at 20:06 GMT, Wednesday, 16 April 2008 21:06 UK

EU predicts Iraqi gas deal soon

Iraqi PM Nouri Maliki [L]with European Commission President Jose Manuel Barroso
Mr Maliki has asked the EU to provide further technical help

The EU has said it is just weeks away from signing an energy accord with Iraq to bring more gas and oil to Europe.

On a visit to Brussels, Iraqi Prime Minister Nouri Maliki said his country was close to adopting an energy law to encourage investment.

EU officials said Iraq would increase oil production and offer 5bn cubic metres of gas as a gesture of goodwill.

Europe relies on Russia for a quarter of its gas and is backing a pipeline to bring supplies from the Turkish border.

On Monday, the EU announced it had been promised 10bn cubic metres of gas annually from next year.

It is hoping that both Turkmen and Iraqi supplies will eventually flow through the Nabucco pipeline.

Construction of the Nabucco pipeline is not due to start until 2010 and, when complete, is expected to carry only 5% of Europe's energy needs.

The Iraqi offer relates to the Akkas gas field in Anbar province. Earlier this year, the Iraqi oil ministry announced it was in talks with Royal Dutch Shell to conduct output tests there.

European Commission President Jose Manuel Barroso said a deal would be reached soon: "These negotiations are going very well... there are already very concrete details now."

Mr Maliki called on Europe to provide further technical expertise to help build Iraq's industrial and administrative base.




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