He said the plateau production period for a series of deals signed with oil majors could be extended to 13 or 14 years rather than the current seven years, but no final decision has been made yet. 

Iraq, which needs cash to rebuild infrastructure, is under pressure to reopen negotiations with oil firms and abandon the 12 million bpd target by 2017. 

Iraqi oil officials have long aimed to increase Iraq’s output after awarding a series of development contracts to global oil firms in 2009. The ambitious figure would vault Iraq into the top echelon of producers.

Analysts have said such a target was unlikely to be met due to export and infrastructure constraints and several Iraqi officials, including Luaibi, have talked of the possibility of lowering it.

Luaibi said the oil ministry was still studying two consultant’s reports on the issue and he expected a decision by next year, after which the ministry would approach oil companies developing the fields about a renegotiation.

“We are always keen to do what is best for Iraq and for the companies as well,” the oil minister said on the sidelines of an energy event in Amman.

“I think all parties can reach an agreement to reduce the plateau and increase its period.”

Luaibi said the revision would benefit Iraq by allowing it to build infrastructure that can cope with actual oil and gas production, and would help stabilize crude sales and marketing.

Iraq, which relies on oil for 95 percent of its revenue, arrived at its ambitious capacity target by adding up individual field production plateaus, which oil companies were committed to reach in 6-7 years.

The contracts are production driven, and oil companies get fees for each barrel produced. Any deep cut to Iraq’s overall target could mean the deals could need to be adjusted to accommodate lower production plateaus, which would mean lower returns for oil companies in the short term.