Iraq and Oman have signed a memorandum of understanding (MoU) to increase cooperation in the oil and gas sector, Reuters reported.

The agreement will allow Iraq to export crude oil to and import petroleum products from Oman, according to Thamer Ghadhban, the Iraqi Minister of Oil.

Under the agreement, oil storage facilities will be built in both countries, with the possibility of building a shared refinery in Oman for processing imported Iraqi crude, the minister said in a statement.

The two countries will also explore prospects of cooperation and investment in the explortion and production of crude oil and natural gas, as well as refining, manufacturing, storing, and marketing crude oil and petroleum products.

Iraq recently welcomed Oman’s Ministry of Foreign Affairs decision to reopen its embassy in Baghdad, which has been closed since the invasion of Kuwait in 1990.