Iraq talks with Kuwait, Iran on shared oil - report

DUBAI (Reuters) - Iraq, home to the world's third largest proven oil reserves, is in talks with neighbouring Iran and Kuwait to reach a deal to pool shared oilfields, the London-based Asharq al-Awsat reported on Sunday.

"Iraq has entered negotiations with Kuwait and Iran," it quoted Iraqi Oil Minister Hussain al-Shahristani as saying.

"We have informed them of the necessity of signing an agreement to unify the oil fields and to move away from a situation where each side has control from its side as that will bleed these fields in an uneconomical way."

Iraq is hoping for a further output boost after oil production and exports reached a post-war high in May.

The country, whose main source of revenue is oil, needs huge investment after decades of sanctions and war, but sabotage and oil smuggling have robbed it of billions of dollars and hampered reconstruction.

Delays in approving a long-awaited oil law to govern the industry have also held back investment in the sector.

Asharq al-Awsat did not say which oil fields Iraq was hoping to pool with its neighbours.