The state-owned Iraqi Midland Oil Company said that it has discovered huge oil reserves in the East Baghdad oil field

Mohammed Yassin Hassan, director general of the company, said the new discovery is expected to add more than 2 billion barrels to Iraq's oil reserves, according to a statement by the company.

Initial tests of the well showed a daily production rate of up to 5,000 barrels of crude oil, he said, adding that this discovery has strategic importance as it adds to Iraq's oil reserves and enhances Iraq's production capabilities, it said.

Iraq, a member of the Organization of the Petroleum Exporting Countries, holds more than 145 billion barrels of proven oil reserves.

The country's economy heavily relies on crude oil exports, which account for more than 90 percent of its revenues.