Iran and Iraq are expected to sign an agreement for export of 2m tons of gas oil to Iraq, which will turn the neighboring country into largest buyer of the Iranian oil product, the Mehr News Agency reported.

National Iranian Oil Products Distribution Company’s Director for Export and Import, Esmaeil Hasham Firouz, pointed out that “the new deal for gas oil exports to the neighboring company will be extended.”

In time with the deployment of gas oil to Iraq, export of the gas product to the Iraqi Kurdistan also marks Iran’s priority this year aiming at boosting the 2015 levels of more than 5m liters of gas oil exported to the region, Hellenic Shipping News informed.

Overall, Iran shipped near 2b liters of gas oil to various world countries in the previous year including Iraq, Iraqi Kurdistan, Pakistan, Afghanistan, Tajikistan, and some African countries.

Nevertheless, the fall in global oil prices has brought about numerous problems for Iran’s export of oil products particularly gas oil and fuel gas as the price of Iran’s gas oil has dropped from $970 to $280 per ton.