Iraq over optimistic on oil, output to fall -IEA

[IDemo]

LONDON, June 29 (Reuters) - Iraqi plans to raise oil output to 6 million barrels per day (bpd) by 2017 are likely to be over optimistic, the International Energy Agency said on Monday, saying oil capacity could fall over the next two years.

The IEA said in its Medium-Term Oil Market Report it had taken a very conservative view of Iraqi production capacity for 2008/14 despite tremendous international interest in the country's oil development projects.

It forecast Iraqi oil production capacity would fall to as low as 2.23 million bpd in 2010/11 before gradually rising to 2.7 million bpd by 2014. The country's oil production is now between 2.3 million and 2.4 million bpd, industry sources say.

Iraq has the world's third-largest proven oil reserves, estimated at 115 billion barrels, but its petroleum industry has been devastated by years of war and international sanctions.

http://www.reuters.com/article/marketsNews/idUSLT5830320090629