BASRA – Iraq plans to invest $173 billion in its energy infrastructure over the next five years in order to dramatically ramp up crude output, Oil Minister Abdul Karim Al Luaibi, said Saturday.



The investment in upstream activities, refineries and to increase natural gas production will boost oil production to 9.0 million barrels of oil per day and bring in revenues of $600 billion, Al-Luaibi told a conference in the southern port city of Basra.



“This plan will achieve revenues that will reach about $600 billion in the coming five years,” Al Luaibi said.



Iraq currently produces around 3.15 million bpd, according to oil ministry spokesman Assem Jihad, of which around 2.5 million bpd is exported. The country has proven reserves of 143.1 billion barrels, among the highest figures in the world.



It has sought in recent years to sign contracts with international energy firms in order to boost output sharply and cement its role as a key global oil supplier.



Baghdad is almost entirely dependent on crude sales for much-needed revenues to rebuild Iraq’s decrepit infrastructure and state-dominated economy, both of which have been shattered by decades of conflict and sanctions.



Meanwhile, Royal Dutch Shell will resume operations at Iraq’s Majnoon oilfield on May 1, with initial production of 100,000 barrels per day (bpd), Al Luaibi further said Saturday.



The production re-start at one of Iraq’s major fields could help boost the OPEC member’s exports toward the 2.9 million bpd average projected in the budget, making up for a cut by the country’s autonomous north.



Iraq exported an average 2.538 million bpd in February, Al Luaibi said, up from 2.359 million the previous month.



“The significant factor which affected exports was the weather... but we hope, these months... we will compensate the lost amounts of the first season,” he said.



Majnoon was shut down in June for maintenance and to bring new production facilities online.



“Majnoon is planned to start producing on May 1. The production average will be 100,000 bpd to begin with and speedily rise to 200,000 bpd,” Al Luaibi said.



At their peak, oil exports from Iraq were above 2.6 million bpd, but last December its Kurdistan region stopped shipping crude because of a row with the central government over payments to oil companies operating in the region.



In recent years, the Kurds have signed deals on their own terms with the likes of Exxon Mobil, Chevron Corp and Russia’s Gazprom Neft, riling Baghdad, which rejects the contracts as illegal.



Iraq has the world’s fourth-largest oil reserves and is targeting exports of 6 million bpd by 2017.



Al Luaibi will be the headline speaker at the upcoming Iraq Energy titled “2013/14: Opportunities for UAE-Iraq Cooperation” conference in Abu Dhabi on May 22-24. — SG/Agencies