The Kurdistan Regional Government (KRG) and Iran are reportedly looking to enter a co-operation deal that would see Kurdish oil exported to Iran.
The two sides are planning to build a pipeline that could transfer as much as 250,000 barrels of oil per day from Kurdistan to Iran, Al Jazeera news network has reported.
A deal has yet to be officially signed, as technical aspects and political implications are still being debated, the Middle East news broadcaster has said.
However, if finalised, the deal will reportedly include exporting both oil and natural gas.
According to reports, Kurdish oil will probably be pumped to Iran from fields in the Sulaimaniya and the Kirkuk regions, although the latter is currently part of an ongoing disputed area between the governments of Iraq and Kurdistan.
No further details have been revealed ahead of an official announcement.
KRG currently has plans to export as much as 20bn cubic metres of natural gas a day to Turkey by the early 2020s.
Reports put Iraqi Kurdistan’s gas reserves at around 5.6tn cubic metres.
