UPDATE 1-Exxon working with Iraq on oil sector deal - exec

(Adds details, lawmaker comment)

WASHINGTON, May 21 (Reuters) - Exxon Mobil Corp (XOM.N) is currently working with Iraq's government on crafting a technical agreement in the OPEC nation's oil sector, a company executive told U.S. lawmakers on Wednesday.

"We're looking at a technical agreement right now," Stephen Simon, Exxon's senior vice president, told lawmakers at a hearing in the Senate Judiciary Committee.

Even without a long-awaited oil law to set international investment terms, Iraq is plowing ahead to set deals to reinvigorate its dilapidated oil sector.

Simon said he would not agree to delay signing contracts with Iraq's government until the oil law is finalized.

"I'm not going to make any commitment of that type," Simon said.

Sen. Charles Schumer, New York Democrat, said it was "outrageous" for Exxon to forge ahead with oil deals before a framework oil law was enacted, and said such actions could exacerbate sectarian violence in the war-torn nation.

Iraq, whose primary source of revenue comes from oil, needs huge amounts of investment to boost oil output but also to rebuild the country after years of sanctions and war.

Delays in approving the oil law to govern the industry have held back investment -- the current draft being negotiated, for example, was first agreed by the Cabinet in February 2007. (Reporting by Chris Baltimore, editing by Matthew Lewis)