Iran agrees to Iraq oil deal

Iran has agreed to provide Iraq, with which it fought a devastating ten-year war, refined petroleum products to help cover projected winter shortages, an Iraqi oil ministry official has said.

    Iraq's Bahr al-Ulum has been negotiating regional supply

    Aism Jihad, the Iraqi oil ministry spokesman, told Reuters from Iran that a joint Iranian-Iraqi committee will also study a plan to link the two countries' oil products and gas networks to facilitate the exchange.
       
    “An agreement was reached for Iran to provide Iraq with what it needs of oil products to confront the coming winter season,” Jihad said.

    “They will ship LPG (liquefied petroleum gas), petrol and kerosene as soon as possible,” he added. 

    Implementation
       
    The agreement was reached Saturday after Tehran-based talks between Iraq's Oil Minister Ibrahim Bahr al-Ulum and his Iranian counterpart, Jihad said, adding the joint committee was studying the mechanisms of implementing the deal.
       
    "The committee is studying the linking of the networks for gas and oil products which will facilitate the exchange operations and boost this cooperation," Jihad noted.
       
    Asked what the Iranians will get in return for the refined products, Jihad said: "This has not been finalised. They may get Iraqi crude."
       
    Iraq and Iran fought a war between 1980 and 1988.

    Bahr al-Ulum, who plans to return to his country on Sunday, has toured other Gulf OPEC states Kuwait, Saudi Arabia and Qatar.

    Kuwait has also agreed in principle to provide Iraq with refined petroleum products in exchange for Iraqi natural gas and the Iraqi minister has also said that he relayed a similar request to the Saudis and Qataris to head off a looming oil products shortage in his country this winter.

    SOURCE: Reuters


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