The Iraqi Oil Ministry has confirmed that production has resumed at a major refinery in the west of the country after being stopped for more than three years due to Sunni insurgency.

In a statement released by government officials, it was revealed that the 51-year old refinery, which is located in the Anbar province close to the border with Syria, will be operating with an initial production capacity of 16,000 barrels of oil a day.

While a specific timetable has yet to be established, it is also expected that production will be increased to 70,000 barrels a day within the next few months as the government looks to realise the full potential of the country's resources, with estimates showing that Iraq has the third largest known crude oil reserves in the world.

Currently the Iraqi Oil Ministry is also looking to sign two new refinery contracts in the south of the country, including one with foreign operators for the 300,000 barrel-a-day facility in the Nasiriyah province, around 200 miles south of the capital, Baghdad.

It also recently announced that it is to host a major conference in October aimed at bringing together overseas operators and Iraqi oil officials to discuss the future developments for the industry.