(EnergyAsia, August 25 2011, Thursday) — Bowing to the reality of the country’s inadequate war-torn infrastructure and political instability, Iraq has abandoned its original plan to boost production to 12 million b/d by 2017.

The government has been forced to set a new target of producing 6.5 to 7 million b/d, still a significant achievement as it is producing 2.7 to 2.8 million b/d at present.

As a result of the new production target, the government is re-negotiating long-term service agreements with oil firms.

With oil prices expected to rise in the coming years, Baghdad expects to increase its oil revenue despite the lower-than-expected production.