Iraq, Iran Agree To Export Kirkuk Oil

Iraq, Iran Agree To Export Kirkuk Oil

Iraqi Oil Minister, Jabbar al-Luaibi announced on Saturday (December 9) that his country has come to an agreement with Tehran to export Kirkuk’s oil at a rate of 30,000 to 60,000 barrels per a day.

The agreement between the Iraqi State Organization for Marketing Oil (SOMO) and the Iranian side allows for transfer of the oil by truck to the border point, Kirmashan, between the two countries.

“The Iranian side is expected to hand over the same quantities with the same specifications across southern Iraq," said Luaibi in a statement.

The director of SOMO, Alaa Yasiri said that the agreement will contribute to an additional export port for Iraq and facilitate transporting the oil to the south “as well as strengthening economic relations with neighboring countries."

Iraq invited foreign firms to apply for tenders to explore and develop nine oil and gas fields along its Iranian and Kuwaiti borders, along with an offshore bloc.

Iran and Iraq decided on a plan for developing a pipeline to carry 40 million-cubic-meters (mcm) of gas to Iraq in September 2015. The plan was delayed over security concerns resulting from the war with the Islamic State (ISIS) in Iraq.

Iraq is a founding member of the OPEC cartel and its second largest producer after Saudi Arabia, but currently only exports about 4.4 million barrels of oil per day.