Iran, Iraq move forward in Kirkuk oil pipeline construction plans

Iran and Iraq have reached an agreement for the construction of an oil pipeline between the two countries. The pipeline would export crude oil from the northern Iraqi fields of Kirkuk via Iran, Iranian Oil Minister Bijan Zanganeh said after meeting his Iraqi counterpart Jabar al-Luaibi.

Agreements were reached between the two ministers about an international company that will carry out a feasibility study of the project,Zanganeh was quoted as saying in the SHANA report.

Iraq and Iran signed a memorandum of understanding in February to study the construction of the pipeline.

Separately, Zanganeh said Iran would begin exporting gas to the Iraqi city of Basra in coming months.

He said there had been some problems in receiving payments for current gas exports to Iraq via banks and that Iran was receiving cash payments.