FX.co ★ Iran and Iraq to resolve dispute on joint oil fields

The oil ministries of Iraq and Iran signed a memorandum of understanding to settle disputes over the joint oil fields.

According to the document, there is a near-future possibility of building a pipeline to export crude oil from the Kirkuk field located in the north of Iraq. The parties also plan to consider the prospect of the crude transportation project from Iraq to the Iranian Abadan refinery.

Iraqi Oil Minister Jabbar al-Luaibi agreed with his Iranian counterpart Bijan Zanganeh on a joint commitment to achieve balance on the global oil market and to support oil prices. Moreover, the countries intend to construct pipelines to export crude oil from Kirkuk fields through Iran.

Both nations shared the fields of Majnoon, Abu Ghraib, Bazerkan, Al-Fakkah and Khana, which contain great reserves of light crude oil. The reserves exceed 95 billion barrels. This is the largest reserve of hydrocarbons in the Middle East.

To reach a compromise on oil fields, Iraq and Iran created a special joint committee.