Iran has denied that it has reached an agreement with Kurdistan in Iraq for laying joint oil pipelines, The Siasat Daily reported.

Iranian Ministry of Petroleum’s public relations announced that The Islamic republic has made no agreements with the Iraqi Kurdistan for construction of two pipelines to receive crude oil from the autonomous region. The statement further declared: “Any decision in this regard will be made during the upcoming visit of Iranian Minister of Petroleum, Bijan Namdar Zanganeh, to Iraq following his talks with the Iraqi officials,” according to Global Times.

This news came after Iraq Prime Minister Haider al-Abadi said the autonomous Kurdish region was exporting more than its allocated share of oil as the country seeks to comply with an OPEC output cut.

Under the terms of the 2017 budget, which passed despite a boycott from a key Kurdish party, the autonomous region is allocated 250,000b/d exports from oilfields under its control. That does not include the disputed Kirkuk fields, which Kurdish forces control but are run by Iraq’s North Oil Company (NOC). Furthermore, The Kurds built their own oil pipeline to Turkey and began exporting oil via Turkey without Baghdad’s approval in 2013.