Iraq, Iran agree on joint investment in 2 oil fields

Iraqi and Iranian governments yesterday agreed to start joint investment in two oil fields located on the borders between the two countries, the Anadolu Agency reported.

The Iraqi Oil Minister Jabbar Al-Luaibi said that he signed the initial agreement with his Iranian counterpart, hoping that they sign the final agreement in the first quarter of the next year.

He also said that the agreement is a “step in the right direction” regarding the investment of the two oil fields. The agreement, he added, guarantees the right of both sides based on international criteria and as stipulated in international contracts.

One of the fields produced 20,000 barrels per day before it was stopped when the Iraq-Iran war started in the early 1980s. In 2003, it resumed work and produced between 4,000 to 5,000 barrels a day.

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The Iraqi minister said that a committee was formed to study the opportunity to export crude oil via pipes to Iran, then to Turkey and then to the world markets through tankers.

Iraq has 24 oil fields common with Iran and Kuwait, including 15 active fields. Iraq is the second largest OPEC producer. This country depends on oil revenues to pay for more than 95 per cent of its expenses.