Ali Maarij, head of Iraq's state-run Maysan Oil Co., said the new plants will raise the production capacity of Halfaya field by 100,000 barrels per day.

Halfaya field currently produces around 12,000 bpd and plans to hit 20,000 bpd by the end of this year. Production of around 90,000 bpd is expected to be achieved in the first quarter of 2012, Maarij said.

Iraq last year signed a contract to develop Halfaya with CNPC, France's Total and Malaysian state company Petronas , for a fee of $1.40 per barrel. CNPC has a 37.5 percent interest in the consortium.

Copyright Reuters, 2011