Iraq oil output, exports hit post-war high

By Ahmed Rasheed

BAGHDAD (Reuters) - Iraq has raised oil exports to a post-war high, earning billions of dollars to fund reconstruction after Baghdad cracked down on sabotage of its strategic pipelines, the oil minister said on Sunday.

In an interview with Reuters, Hussein al-Shahristani said he expects 2008 oil revenues to reach $70 billion if oil prices stay high and there are no output disruptions.

Shahristani was optimistic Iraqi forces would be able to sustain tight security at oil facilities.

That could raise the confidence of foreign investors who have been discouraged by sectarian violence, al Qaeda and powerful Shi'ite militants who had a tight grip on Basra, home to Iraq's biggest oilfields.

"In May, we have exceeded for the first time 2 million barrels-per-day (bpd) as an export rate," Shahristani said.

Production had also climbed to a post-war high of more than 2.5 million bpd, he said. Shahristani was confident Iraq could pump up to 2.9 million bpd by the end of 2008.

He declined to comment on export levels for June, but senior Iraqi oil officials said last month shipments would run slightly higher because of extra Kirkuk sales from the north.