(Adds comments on OPEC) By Jane Barrett and Alex Lawler DAVOS, Switzerland, Jan 25 (Reuters) - Iraq's oil minister said on Friday he expected his country's output to rise by as much as 400,000 barrels per day in 2008, reflecting improved security in the oil sector. Hussain al-Shahristani also said Baghdad expected to sign contracts with oil firms to help develop its super giant oilfields that are already producing -- an opening long awaited by the industry -- by the end of the year. Baghdad is currently pumping 2.3 million bpd of oil and expects to boost supply to between 2.6 million and 2.7 million bpd during 2008, Shahristani told Reuters at the World Economic Forum in Davos. "We are increasing our production and all the increase will go to exports," he said. "There is a much improved environment for the security. We expect this to improve and allow us to increase our production and exports." Iraq's exports have risen largely because of more reliable flows through its pipeline to Turkey, which has been hit by sabotage and technical problems for much of the time since the U.S.-led invasion in 2003. Baghdad is pumping crude from its northern fields to Turkey at a rate of around 480,000 bpd, a shipping source said on Thursday. Pumping had stopped last week due to a power cut. While some in the industry are sceptical Iraq can sustain a regular flow of oil exports from the north, the Iraqi minister expected improved security to allow higher supplies. "Although the infrastructure has been neglected for decades...in the oil industry we have managed to protect our pipelines," he said. "It's the electricity grid that keeps on being attacked by the insurgents." BIDDING ROUND Many oil companies have registered to be qualified to bid to help develop Iraq's oil industry, the minister said. "We are going to sign in the first quarter of 2008 technical support contracts -- bridging contracts for a year or two," he said. "And we are going to go through the first bid round for the field developments -- these are the super-giant Iraqi fields, the brown fields -- we're going to sign contracts for the development of those fields by the end of 2008." "We'll go through a second round of bids in 2009." The Iraqi minister said he had seen no impact on oil demand despite concern about slowing economic growth, a main theme of the World Economic Forum this year. "We have been hearing about a possible recession in the United States, (but) we have not seen any effect on the oil demand, neither in the U.S. or outside the U.S.," he said. Oil has fallen to around $90 a barrel from a record high of $100.09 earlier this month. Prices will probably trade near the present level or ease, the minister said. "We expect the price to remain at the current level, perhaps slightly lower, during 2008. Perhaps between $70 and $80." Iraq is one of the 13 members of the Organization of the Petroleum Exporting Countries, though exempt from the group's agreements to pump oil at agreed levels. OPEC meets on Feb. 1 to set output policy and several of its oil ministers, including Shahristani, have said they do not expect the group to raise its supply target. "We don't feel there is a shortage of oil on the market today," he said. "If that would be the case when we revise all the statistics, then we are always ready to provide the market." (Additional reporting by Sam Cage, editing by Anthony Barker)
Demonstrators shout slogans in Medellin during a protest against the visit of U.S. Secretary of State Condoleezza Rice to Colombia January 23, 2008. Rice will lead a group of U.S. lawmakers ...
