BAGHDAD, March 12 (UPI) -- Iraq and Iran intend to increase economic cooperation and have signed a deal to build an oil pipeline from Basra, Iraq, to refineries in Abadan, Iran.
Azzaman reports the two countries have increased economic ties and, as part of furthering that, Iran will increase the amount of liquified natural gas it sends to Iraq.
The oil pipeline will begin at Basra, Iraq's major port. Iraq oil production and, in turn, exports, have slumped since the war began nearly four years ago. Production was around 2.6 million barrels per day, and it has dropped to about 2 million bpd. Exports are around 1.6 million bpd.
Nearly all of that is from Basra, because violence has disrupted other exports.
Iraq Trade Minister Abdulfalah al-Sudani signed the memorandum of understanding during meetings in Iran with his counterpart, Saeed al-Kadhami.
