Iran, Iraq finalizes MoU on two joint oil fields
Baku, Azerbaijan, Jan. 10
By Dalga Khatinoglu – Trend:
Iran and Iraq have finalized memorandum of understanding to develop two joint oil fields, Shana news agency reported.
“The MoUs would be signed soon,” Amir Hossein Zamaninia, deputy minister for trade and international affairs of Iran said.
The mentioned fields are Parviz (Called South Naftkhana in Iraq) and Khorramshahr (called Sinbad field in Iraq).
Zamaninia didn’t mention the volume of oil reserves in these fields, but both are small and undeveloped projects. He also said that Iran has finalized a MoU with Iraq in mid/downstream cooperation, including renewing Iraq’s refineries.
Iran has also signed two agreements to export 25 million cubic meters of gas per day to each of Iraq’s Baghdad and Basra refineries.
Iran says it is ready to start gas deliveries to Baghdad in restricted amount after Iraq pays off its debts to Iran for construction of gas pipeline on its territory.
However, Zamaninia said that Iran is waiting for opening a letter of credit (LC) to ensure the payments of the gas deal.
“As soon as LC is opened, we can start gas export to Baghdad," he said.
Iran should complete the 6th cross-country pipeline (Igat6) to be able to export 50 mcm/d of gas to Iraq in future.
The project with 110 mcm/d transit capacity (to transit gas to Iran’s western regions as well) is already under the construction and it would cost $2.3 billion, Iran says.