Kuala Lumpur, June 13 (Reuters): Petroliam Nasional Bhd (Petronas), Malaysia’s state oil company, said on Monday it was in talks with Iraqi officials about how it could help develop the country’s war-battered oil industry.

Petronas, already working in political hot spots such as Sudan, Myanmar and Iran, is expanding offshore as part of a long-term ambition to become a global industry heavyweight.

“I think any oil and gas player cannot ignore Iraq,” chief executive Hassan Marican said.

“It’s a new source of investment and reserves. We have been active in Iraq in the sense that we have been talking to them and we will continue to do so mainly on the upstream,” he told reporters at the annual AOGC oil and gas conference here.

Mainly Muslim Malaysia opposed the US-led invasion of Iraq in 2003, but it did offer to help with reconstruction.

Oil companies are anxiously eyeing Iraq’s giant oil reserves, the second largest in the world with 115 billion barrels, as output falls in mature areas, and other West Asian nations such as Saudi Arabia show little willingness for foreign investment.

Petronas and other companies such as Chevron and Total are providing Baghdad with limited technical assistance and training in hopes of a greater role in the future, but security and political concerns have deterred investment.

“Many giant companies are trying to work with our country and Iraq is inviting foreigners to come and invest,” Riyadh Alani, head of international affairs at the Iraqi oil ministry, said at the same conference.