Iraq hopes to turn around years of sluggish oil production and boost output by over 300,000 barrels per day (bpd) by the end of next year, its oil minister said.

Hussain Al Shahristani spoke at a conference on Friday in which experts are discussing ideas for a short-term boost in oil production, a step toward bringing a country with the world's third largest oil reserves closer to its potential.

Iraq is pursuing long-term contracts to develop major oil and gas fields, but in the meantime it needs a quick fix.

'In this meeting, an accelerated plan will be discussed to raise crude production by more than 300,000 bpd during this year and the coming year,' Al Shahristani said.

Iraq now produces an average of 2.3-2.4 million bpd, less than it did before the US-led invasion to oust Saddam Hussein in 2003 sparked years of bloodshed and destruction.

It is also looking to boost exports, now averaging around 1.8-1.9m bpd, to 2m bpd this year.

Exports, which have been hindered by technical problems, hit a post-invasion peak of 2m bpd last May.

'We are in a race against time. Every day that passes in which the oil industry is halted, we lose a chance to develop,' Prime Minister Nuri Al Maliki said at the conference.

The collapse in world oil prices since their all-time high last July of $147 a barrel has made the need for transforming the oil sector even more urgent.

The government sent a high-powered team to investigate inadequate production in Iraq's oilfields and make recommendations for a quick turnaround. The recommendations are due to be presented at the conference.

Iraq has had to reduce twice its budget plans for this year due to the falling price of oil, which accounts for more than 90 per cent of government revenue.

Al Maliki said the country must diversify its economy or risk being vulnerable to drops in oil prices such as the recent fall, which has forced Iraq to trim its budget and could shrink plans for reconstruction.-Reuters