Iran and Iraq Sign Oil Deal

Iran and Iraq have signed a deal to construct a new pipeline transferring crude oil and other products, the Iraqi Oil Minister announced.

The thirty-two inch wide pipeline will transfer crude oil from Basra's port in southern Iraq to the Iranian port of Abadan.

Iran will purchase 100,000 barrels of Iraqi crude for refining in the port of Bandar Abbas before selling it back to Iraq.

The Iranian Oil Minister Kazem Vaziri-Hamaneh, who was dismissed at the weekend, will be replaced by the head of the state-owned National Iranian Oil Company (NIOC) Gholamhossein Nozari, who will become caretaker oil minister.

Reported by staff writer