TOKYO, Oct 24 (Reuters) - Iraq, which now loses more than 10 percent of its crude oil output due to sabotage, hopes to announce a first round of bidding for oil projects soon after an oil and gas law is passed by the end of this year, Iraqi Oil Minister Hussain al-Shahristani said on Tuesday.
Al-Shahristani, who is visiting Japan for loan talks with government officials, said a number of international oil companies have already shown interest in oil projects in Iraq.
"A hydrocarbons law is expected to be passed by the Iraqi parliament by the end of the year," Al Shahristani told reporters. "Iraqi will announce which projects will be open (to foreign oil companies)." He did not name the companies.
Al Shahristani arrived in Tokyo at the weekend after a visit to China, where energy demand has been growing at robust pace.
Late in September, China National Petroleum Co. (CNPC) said it was ready to return to Iraq to develop an oilfield, reviving a deal signed in the Saddam Hussein period, if it was officially invited to do so.
Iraq's oil ministry had said before the CNPC's comment that Al Shahristani was to visit China shortly and would discuss with Chinese companies the fulfilling of contracts signed with the former government.
The minister did not give any details of his visit to China.
CNPC, with state arms manufacturer Norinco was awarded the contract to develop the 90,000 barrels per day Ahdab field in south central Iraq by Saddam.
The project was effectively frozen by international sanctions and then by the toppling of his government by the U.S.-led invasion in 2003.
The field was estimated to cost $700 million to develop.
Iraq targets raising its crude oil output to 3.5 million barrels per day from an estimated 3 million bpd this year and 4 million bpd by 2010, then to 6 million bpd in 2012-2013 by developing new oilfields jointly with international oil companies, Al Shahristani said.
Al Shaharistani also said he had been talking with the Iraqi Defence Ministry about improving security at the country's oil pipelines to protect them from sabotage attacks.
Iraq would be able to restore as much as 400,000 barrels per day of oil production by tightening up pipeline security.
"That's what we are losing now," he said.
Al Shahristani was visiting Tokyo to negotiate a possible yen loan amounting to $3.5 billion to support Iraqi projects which the Japanese government said it was considering.
The Japanese Trade Ministry agreed on Tuesday to lend Iraq up to 2.08 billion yen ($17.4 million) which will be used to upgrade work at a refinery in Basra in the south of the country.