RoydadNaft –  Iran and Iraq signed multiple memoranda of understanding to expand cooperation in the oil and energy sectors, as the two sides explored new avenues for joint development and technical collaboration.

According to a statement by Iraq’s Oil Ministry, Iranian Oil Minister Mohsen Paknejad and his Iraqi counterpart Hayan Abdulghani met in Baghdad to discuss bilateral energy ties. The two officials signed agreements aimed at enhancing cooperation across various segments of the oil and gas industry, including experience-sharing, technical collaboration, and joint project development.

Abdulghani highlighted Iraq’s promising gas investment projects and the country’s goal of achieving self-sufficiency in petroleum product production. He expressed Iraq’s readiness to deepen technical and investment ties with Iran.

Paknejad, in turn, praised Iraq’s warm reception and emphasized the cultural and historical connections between the two nations. He stressed the importance of continuing cooperation, particularly in the energy domain.

In a separate statement from Iran’s Oil Ministry, Paknejad elaborated on the signed MoUs, noting they include agreements on offshore exploration and the transfer of associated gas from joint oilfields in Iraq to Iran, where it will be used as feedstock for natural gas liquids (NGL) plants. The initiative is to be carried out with private sector participation.

He said some of the agreements include non-disclosure provisions and preliminary operational commitments, moving beyond general understandings toward implementation.

The Iranian oil minister explained that certain offshore exploration projects will be launched using Iranian expertise, with technical details to be reviewed by a joint working group. He also pointed out that Iran faces feedstock shortages in NGL plants in its western region, while Iraq currently flares significant volumes of associated gas from fields near the Iranian border. The agreements aim to recover this gas and transport it into Iran.

Paknejad arrived in Baghdad on a two-day official visit at the invitation of Iraq’s oil minister. In addition to meetings with energy officials, he is also expected to meet Prime Minister Mohammed Shia’ Al Sudani. Upon arrival, Paknejad visited the memorial site honoring the late Iranian commander Qassem Soleimani and Iraqi militia leader Abu Mahdi al-Muhandis.