‘Iraq is in negotiations with San Ramon-based Chevron Corp. and Exxon Mobil Corp. to build a new $3 billion petrochemical facility, and is in talks with several other Western companies over industrial projects.

In an interview Thursday, Fowzi Hariri, Iraq's minister for industry and minerals, said the discussions with Chevron and Exxon began this week in Washington and are at an early stage.

"It will be one or the other company for this new facility, not both," he said. "We're hoping to have a (Memorandum of Understanding) in place by about July."

The minister, who has been in his post since June, said the issue of security was a prominent feature of the discussions, given the sectarian conflict that has come to characterize Iraq over the past year. He said he emphasized to the companies that much of the violence has been in Baghdad.

The discussions with the companies have been greatly aided by an Iraq foreign investment law that won final approval last October, he said.

Chevron also reported Friday that a deepwater test well off the coast of Angola, Africa's fastest-growing oil producer, showed a "significant" discovery.’

Chevron Holds Talks With Iraq To Build Facility