Iraq's oil production will reach 3 million barrels per day (bpd) by the end of this year from its current output of 2.9 million bpd, the Iraqi oil ministry said on Monday.

The ministry said crude exports from the Opec member were expected to reach 2.5 million bpd at the start of next year.

'Iraq is moving fullsteam ahead to increase exports to 2.5 million barrels per day at the start of next year. Today Iraq produced a level of 2.9 million barrels,' Oil Ministry spokesman Asim Jihad told Reuters.

Iraq expects to turn on the tap at one of three new oil export terminals in the Gulf on Jan. 1, a major milestone in its effort to build export capacity to handle increasing output from its southern oilfields.

Iraqi oil exports were 2.101 million bpd in September and is expected to increase remarkably to higher levels right at the start of next year, helped by having the first floating terminal operating, the head State Oil Marketing Organization (SOMO) said.

Iraq is trying to overcome crude export infrastructure limitations to achieve its ambitious plans to tap into the world's fourth-largest oil reserves and rejoin the ranks of major exporting countries.

It signed a host of deals with oil majors to boost production capacity to 12 million bpd by 2017, but Oil Minister Abdul-Kareem Luaibi said recently a plateau target of 8 million to 8.5 million bpd would be more suitable and the period could be extended to 13 or 14 years. – Reuters