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Iraq, Iran agree on construction of oil pipeline

21 February 2017 12:25 (UTC+04:00)
Iraq, Iran agree on construction of oil pipeline

By Kamila Aliyeva

Iraqi Oil Minister Jabbar Allibi and his Iranian counterpart Bijan Zanganeh signed a memorandum of understanding to study the possibility of building a pipeline to export oil from Iraqi oil fields, the Oil Ministry of Iraq reported.

“Iraq and Iran signed a MoU on February 21 to consider the construction of a pipeline for oil exports from Northern Iraqi field of Kirkuk through Iran,” the report says.

The agreement also calls for a commission to solve the conflict about joint oil fields and the possible transportation of Iraqi crude oil to Iran’s Abadan refinery.

The Iraqi Oil Minister also agreed to visit his Iranian counterpart to cooperate on the policies of the Organization of Petroleum Exporting Countries (OPEC).

The MOU came after both countries previously signed an agreement of construction gas pipelines. The two countries decided on a plan for developing a pipeline to carry 40 mcm of gas to Iraq in September 2015. The plan was delayed over security concerns resulting from the war the IS group has waged in Iraq.

Iraq’s vast reserves of oil and natural gas make it one of the most promising, still largely undeveloped, sources of hydrocarbon reserves in the world. After decades of underinvestment due to conflict and sanctions, Iraq is actively seeking international investment and expertise to help in the development of its oil and gas sector, where output remains below potential.

According to the U.S. Energy Information Administration, Iraq’s proven natural gas reserves are
111.5 trillion cubic feet (Tcf), the twelfth largest in the world. An estimated 70 percent of these lie in Basra governorate (province) in the south of Iraq.

Iran has natural gas reserves of 34 billion cubic meters, almost 40 percent more than Qatar, the world’s biggest exporter of liquefied natural gas, according to BP Plc.

Iran is producing about 700 million cubic meters per day (mcm/d) of gas, while the country has planned to increase this volume to 1,300 mcm/d by 2020.

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

Follow us on Twitter @AzerNewsAz

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