Iran and Iraq are working on developing two oilfields, the Naft Shahr and Khorramshahr, on their mutual border, according to Iranian Oil Minister Bijan Zanganeh, Reuters reported.
Zanganeh did not provide any further details about the development plan.
Iran plans to contribute to the development plan by rebuilding old refineries and helping in building a network for gas delivery, according to Amir Zamaninia, Iran’s Deputy Oil Minister for Trade and International Affairs.
The two countries have close energy relations as Iraq imports around 1.5 billion standard cubic feet of gas per day for its power stations through pipelines in Iran’s south.
The understanding between the two countries came after the Iranian president, Hassan Rouhani, urged to boost the mutual cooperation and the bilateral trade relations to reach around $20 billion, up from the current level of around $12 billion.