HOUSTON—While giving foreigners and locals opportunities to develop massive hydrocarbon reserves and guarding against security threats, Iraq produced about 4 million barrels of oil per day (MMbbl/d) by mid-2016.

But the country plans for production to approach 5 MMbbl/d by second-half 2017, Iraq Oil Minister Jabbar Ali al-Luiebi told a crowd during CERAWeek by IHS Markit.

The growth comes as the global oil and gas industry, including in the Middle East, emerges from a prolonged downturn caused by too much supply and not enough demand. Plagued in recent years by its fight against terrorism with the added burden of lower commodity prices, the oil-rich Middle Eastern republic has not lost sight of what is needed to keep it afloat.

Voicing optimism for second-half 2017, Luiebi said Iraq will progress in stabilizing the north—where militant attacks have damaged oil facilities—and advancing the energy sector. Iraq, which depends on oil exports to fund more than 90% of its revenue, according to the International Monetary Fund (IMF), continues to invest in infrastructure, adding pipelines and rebuilding refineries in the north, as well as encouraging investment in its downstream and upstream sectors, al- Luiebi said.

“There are a lot of great opportunities in Iraq for investment, especially the foreign investments,” al-Luiebi said.

Although Iraq, OPEC’s second-largest oil producer, has more than 70 oil fields, only 30% of these are developed or partially developed, he said, after mentioning how international oil companies have been invited to submit new contract models to develop fields. In Iraq, fields considered small are capable of producing 100 Mbbl/d, with giants at more than 1 MMbbl/d.

Iraq is currently in talks with ExxonMobil Corp. (NYSE: XOM) to develop two giant fields, he noted, adding both fields produce light oil and are rich in condensate.

The country also depends on natural gas to generate much-needed revenue, including by capturing flared gas in southern oil fields. Currently, about half of the 3.5 billion cubic feet per day of gas associated with produced oil is captured as part of an effort by the Basrah Gas Co. joint venture of Iraq’s South Gas Co., Royal Dutch Shell Plc (NYSE: RDS.A) and Mitsubishi.

With a gas reserve that exceeds 100 Tcf, al-Luiebi said the country will be self-sufficient in meeting domestic gas needs by year-end 2018. Meanwhile, Iraq is stepping up its plans to export LPG, dry gas and other gas products.

“Our plan is to export gas to Turkey and from Turkey to Europe, or go through Syria to the Mediterranean, or Jordan to the Mediterranean, or the Red Sea to the Mediterranean,” al-Luiebi said. “All and all, Iraq is entering a new era of gas processing and gas export.”

Southern Gas Director-General Ihsan Abdul Jabbar told Reuters in January that LPG exports are set to rise to 100,000 tonnes this year, up from 30,000 in 2016. Gas condensate exports could double, jumping to 400,000 cubic meters this year compared to last year.

Meanwhile, oil export volumes have fallen from more than 4 MMbbl/d in November 2016, a reflection of supply cuts promised by OPEC to increase oil prices. Iraq, which was approved for a $5.34 billion IMF loan in 2016 to help stabilize its economy, was initially reluctant to agree to cuts but eventually came around.

“We had some differences here and there and that happens; but we ultimately reached a good agreement and the agreement showed a positive result,” al-Luiebi said during CERAWeek.

Figures from OPEC’s February Oil Market report showed Iraq’s crude oil production fell from about 4.64 MMbbl/d in December 2016 to about 4.48 MMbbl/d in January 2017. It was 4.59 MMbbl/d in November.

By second-half 2017, Iraq plans to have inched closer to 5 MMbbl/d.

Citing an emailed statement from the oil ministry, Reuters reported March 9 that Iraq’s oil exports were 3.269 MMbbl/d in February and 3.320 MMbbl/d in January.

Velda Addison can be reached at vaddison@hartenergy.com or via Twitter @VeldaAddison.