The document concerns development of joint oil and gas fields by the two OPEC-member Asian countries, exchange of technical and engineering services, export of goods and cooperation in petroleum industry-related grounds.
Iranian Minister of Petroleum Bijan Zangeneh and his Iraqi opposite number Jabar Ali al-Luaibi signed the document on Monday.
Assisting Iraq with renewing its oil and gas refining infrastructure is another field the two neighbors will cooperation based on the agreement.
Offering scholarships to Iraqi students to study higher level upstream oil and gas courses in Iranian Universities was also stipulated in the MOU.
Besides, the two officials discussed and reached an understanding regarding export of crude oil from Iraq’s Kirkuk through Iranian territories.
The two sides also agreed that an international consultant shall be introduced for considering technical and economic feasibility of the initiative.
Bijan Zangeneh left Tehran for Baghdad as the head of a delegation to Iraq on Monday.
The visit was being made as follow-up on last month’s visit of another Iranian delegation to neighboring Iraqi for discussing details about signature of two memoranda of understanding (MoUs) between the oil ministers of the two countries.
The first document concerns development of Parviz (Southern Naftkhaneh) and Khorramshahr (Sandbad or Sibeh) oilfields.
The second deal will include different petroleum industry sectors like crude oil trade, manufacture of equipment, natural gas export, renovation of Iraqi refineries by Iranian private companies and training.
Iran is ready to send its gas to Iraq which is prepared to receive gas from Iran, too, said Deputy Petroleum Minister for International Affairs and Trading Amir Hossein Zamaninia last month.
However, he said, the required letters of credit for the transaction have not been opened yet.
Zamaninia further said once financial issues are settled between the two neighbors, Iran will start its gas flow to Iraq.
Iran’s gas will go to the Iraqi cities of Baghdad and Basra.
Gas exports to Baghdad will start with a daily volume of 4 mcm which could increase to 35 mcm/d.
Gas delivery to Basra would come from Iran Gas Trunkline VI (IGAT 6) which transfers gas from the giant offshore South Pars gas field in southern Iran to the border province of Khuzestan.
Part of the gas to Iraq will be used for generation of gas to address some of the country’s electricity troubles.
Iraq is facing serious load-shedding and Iranian companies are operating 33 megaprojects, worth $1.5 billion, in Iraq for the time being.