Iraqi Oil Minister Jabbar al-Luaybi announced on Friday that Tehran and Baghdad has reached a substantive agreement on exporting oil from the northern Iraqi province of Kirkuk to Iran.
According to a statement released by the Iraqi Oil Ministry, the two countries have signed a basic agreement on exporting 30,000-60,000 barrels of oil per day from Iraq to Iran.
Al-Luaybi said this amount can be increased, adding until an oil transfer pipeline is completed, Iraqi oil will be sent by tankers to Iran via the western Iranian province of Kermanshah.
He noted that as per the agreement, Iran will hand over the same amount of oil to Iraq via their common border in south Iran.
The Iraqi minister added this will create new ways for exporting Iraqi oil, refining oil extracted from Kirkuk-based fields and raising Iraq's revenues.
He underlined that in addition, the contract will help strengthen economic ties between Iran and Iraq.
Al-Luaybi said the final agreement in this respect between Tehran and Baghdad will be signed in the near future once technical and executive coordination is concluded.