Iraq deals with oil majors months away-execs

By Simon Webb

DUBAI, March 31 (Reuters) - Iraq and five oil majors are unlikely to sign service deals to boost output from some of the country's largest fields before June after a slowdown in negotiations, oil executives said on Monday.

Baghdad is expected to pay up to $2.5 billion for the firms to help raise the country's output by nearly a quarter, in what would be the largest foreign involvement in Iraq's oil sector for decades.

Iraqi officials had hoped to clinch the deals this month or in early April, but talks had slowed over payment and the majors desire to link the short-term contracts with long-term oilfield development.

"I would be surprised if anything was signed before mid-year," said one executive whose oil company is involved in the negotiations.

"Talks have slowed down but not stopped."

Despite the complications, deals may be concluded by the end of the second quarter, another executive said.

Iraqi oil officials met with representatives of Chevron (CVX.N: Quote, Profile, Research), Royal Dutch Shell (RDSa.L: Quote, Profile, Research), Total (TOTF.PA: Quote, Profile, Research) earlier this month in Jordan to discuss some of the deals.

But negotiators from BP (BP.L: Quote, Profile, Research) and Exxon Mobil (XOM.N: Quote, Profile, Research) were unable to make the last round of talks, and will next meet Iraqi officials in the second half of April, another executive said.