Italian energy company Eni said it signed an amendment to a technical services contract with the South Oil Co. and the Iraqi Oil Ministry for development of the Zubair oil field, located near the southern port city of Basra.
"The amendment sets a new production target of 850,000 barrels of oil per day and extends the duration of the technical service contract for an additional five years, until 2035," the company said in a statement Monday.
The Organization of Petroleum Exporting Countries said in its July market report Iraq was one of the four member states posting a decline in crude oil production levels. Iraq in June, the last full month for which data is available, produced 2.9 million barrels of oil per day, a marginal decline from May.
Political disputes related to authority over oil in the country curbed Iraq's full export potential.
Eni was awarded its contract for Zubair in 2010. The company said the field has a target production plateau of 1.2 million barrels per day.