Iraq still too risky says Exxon-Mobil

OIL and gas major Exxon-Mobil has joined Royal Dutch/Shell in saying it is too soon to invest in Iraq, due to security risks.

'If you can't ensure the physical safety of your people, you can't send anybody there. You can't justify doing that,' Exxon-Mobil chairman Lee Raymond told Reuters.

'I think before anything really significant happens in terms of real investment...there's going to have to be more stability.'

The comments are a blow to US-led efforts to get the war-torn country back on its feet, and underscore the Pentagon's inability to control the security situation.

Last month, Shell indicated it would wait until a 'real Iraqi government' was in power before it would even consider activities in the country.

Iraq has 112bn barrels of oil reserves, second only to Saudi Arabia, income from which traditionally propped up Baghdad's finances. America had hoped a speedy return to full production would help underwrite reconstruction costs.

But, since Saddam Hussein was toppled, efforts have been hampered by repeated attacks on key facilities, widescale looting and the dilapidated state of much equipment.

Raymond said Exxon has had no contact with the White House about how the situation needs to change before the firm would move into Iraq.