Iran and Iraq will “soon” sign a final agreement concerning crude oil exports from oilfields in the Kirkuk region in northern Iraq, which will initially cover an average of 30,000 to 60,000 barrels of oil per day (BPD).
According to the Iraqi oil ministry, minister Jabar Al-Luaibi signed a preliminary agreement for the exports jointly with the Iraqi state-owned oil marketing company, SOMO, and its Iranian counterpart.
The volume will be exported by Iranian tanker trucks to the common border between the two countries near Kermanshah in west Iran, until completion of an oil pipeline extension. There’s a good possibility the export volume will be increased, Kallanish Energy learns.
Al-Luabi noted the Iranian export route will help Iraq benefit from a new source of income, as well as improve economic relations with nearby countries. He said the agreement will be followed by a final signature soon after the parties agree on “some (undisclosed) technical and executive issues.”
In October, Iraqi forces took control of oilfields in Kirkuk from the Kurdish autonomous regional government, KRG. Since then, production has been disrupted and, consequently, exports, too (see related story).