Iraq expects oil exports to rise by about 300,000 daily by January, when a new government is elected with authority to decide on foreign involvement in the sector, the head of Iraq's Energy Council said on Sunday.
Ahmad Chalabi, who has emerged as a key player in a transition government formed earlier this year despite falling out with Washington, said he still favoured giving priority to US and British firms in developing Iraq's oil reserves, the world's second-largest after Saudi Arabia.
"We expect 1.8 million by January. We are looking at substantial increases after the January elections when parliament will act on oil production through some form of association with international companies," Chalabi told Reuters.
"US and British oil companies should have the first right of refusal because the United States and Britain committed to the liberation of Iraq. This is still my view. It may not be shared by the rest of the government."
Although forecasts to raise output has been regularly missed since the US-led invasion, Chalabi said projects to restore overall oil facilities were getting under way and security had been raised to guard against sabotage in the north.
"We are improving security and accelerating investment in the oil sector between now and the end of the year. There is also a boost to investment in the 2006 budget," Chalabi, who is also the deputy prime minister, said by telephone from Baghdad.
Political instability and the violence have delayed projects to rebuild Iraq's oil industry after the 2003 US-led invasion that removed Saddam Hussein from power.
A new parliament is due to be elected in January after a referendum later this month on a federal constitution that dilutes authority on the oil sector away from the central government and to the provinces.
The constitution raised concern that Iraqi oil deals will become even more difficult to negotiate.
But Chalabi said Iraq's political leaders realised that they could not afford to politicise the industry and that production decisions had to involve the centre, although regional governments would negotiate with foreign companies.
"The oil sector will stay out of political disputes, (because) Iraqi officials recognise that it is the lifeline of the economy. The cabinet has already decided to allow foreign majority shareholding of Iraqi banks, and foreign investment and ownership in downstream oil, including refineries," he said.
Majors such as Exxon Mobil Corp, Chevron Corp, BP Plc. and Shell had prepared for an international scramble for Iraq's oilfields before the war. They have kept their links with the Iraqi Oil Ministry despite the chaos following the collapse of the Iraqi state.