The near daily stream of violence in Iraq is a bitter reminder that the country is still far away from stabilizing and that the Sunni-Shiite divide , which has led to over 6000 deaths in 2013 , appears wider than ever . Despite this climate of uncertainty and destruction , Iraq 's top energy official told CNN that the country 's oil production will continue to climb -- reaching at least 3.5 million barrels a day by the end of the year . Hussain al-Shahristani , the Deputy Prime Minister for Energy , said two new fields in southern Iraq , near Nasiriyah and Basra , have revved up production . `` These two fields will add between them 300 thousand barrels . There 's extra production from the other fields so when you add them up you will get to 3.5 , 3.6 million barrels a day by the end of the year , '' Shahristani told me during a one-on-one interview at the Gulf Intelligence conference in Dubai . Iraq has had difficulty managing expectations over the past few years . The original plan was to hit 6 million barrels a day by the end of this year , double that level by 2020 at the latest . Those forecasts have been ratcheted down significantly with the government 's so-called revised integrated strategy . Shahristani said Baghdad needed to decide whether to front load production or set a more realistic target that will allow fields to produce more crude over the next two decades . `` We decided to go for the second option to maximize recovery rather than hit the highest possible production in a short time , '' he said . Iraq was criticized within energy circles for signing service contracts that gives international energy giants a production fee of just $ 1.15 - $ 2.50 a barrel , instead of production sharing agreements that give the majors a percentage of overall production . Shahristani admits that strategy has forced a rethink and in some cases a revising of existing contracts . `` I would confess that our contracts have been very tight , perhaps the toughest the oil companies had to deal with , '' he said . `` We want the oil companies to make a good profit in Iraq and that is why we are willing to reconsider those contracts , '' he added . The climate with its international partners is improving and Iraq is confident it can now deliver a sizable level of production capacity by the end of the decade . It has committed to just over 9 million barrels a day , which would put the country in the league of Saudi Arabia and Russia -- currently the two largest producers in the world . The International Energy Agency in Paris has expressed reservations , suggesting Iraq will be producing 6 million barrels in that time frame . `` All I will say , at this point , is that Iraq has signed contracts with the largest international oil companies who have the best know-how in this field , '' Shahristani said . `` And they have very strong financial muscle , if they say they can do it , they can do it . '' Further , he added , they are bound by contract to do so . According to BP 's 2013 Statistical Review of World Energy , Iraq sits on 143 billion barrels of crude , 9 % of global proven reserves . Oil executives say there is plenty more to be found , with some 300 potential sites in the southwest of the country still not explored . There is speculation that thawing relations between Tehran and Washington could see a partial lifting of economic sanctions on Iran , which has cut production by 1.5 million barrels a day . The deputy PM said he is hopeful negotiations will proceed in good faith , but does not expect downward pressure on prices as a result . However , he said , it was yet to be seen if that would reflect on oil production in the short term . `` I personally doubt 2014 will give sufficient time even if sanctions are relaxed , '' he noted .
The violence in Tehran is a reminder the country is far from stable , but oil production is set to rise the end of this year . Its forecasts have previously been ratcheted down and more realistic targets set . Deputy PM Shahristani said new fields would add to production . Thawing relations between Washington and Tehran could assist in this .