Iran and Iraq signed an agreement to conduct a study for constructing a pipeline to export oil from Iraq's Kirkuk region through Iran on Monday.
Iran's Minister of Petroleum Bijan Zangeneh and his Iraqi counterpart Jabbar al-Luaibi signed a memorandum of understanding (MoU) on cooperation in oil and gas in Iraq's capital Baghdad.
The agreement foresees the formation of a joint committee to work on the pipeline construction project.
The agreement also comprises development of oil and gas fields along common borders, the sharing of engineering and technical services, exportation of goods and cooperation in the field of petroleum and derivatives, Iranian media reports read.
There are 12 common oil fields on the borderline of the two countries, some of which will be developed under the agreement.
Iran's rebuilding of Iraqi oil and gas refineries was also included in the agreement, according to local media reports.
Additionally, Iran's Minister of Petroleum Zangeneh stated that the construction of the first phase of Iran-Iraq gas pipeline, which will transfer Iranian gas to Iraq, is ready for commencement.
He noted that the second phase will be constructed next year.
Reporting by Emir es-Sadi in Baghdad
Writing by Dilara Zengin
Anadolu Agency
dilara.zengin@aa.com.tr