Difficulties obtaining appropriate letters of credit (L/Cs) need to be overcome before Iraq can buy gas from Iran according to the Iranian deputy oil minister.

Amir Hossein Zamaninia alluded to the difficulties when asked about major oil and gas deals between Iran and Iraq.

Exports delayed

Zamaninia said that sales of gas were being delayed because L/Cs needed to be opened before exports can start.

The deputy minister is however now confident that Iran will soon see the L/Cs that it needs.

Future plans

Zamaninia said Iraq's deputy minister for oil and gas affairs, Hamid Younis Salih, had recently told him that his government has now allocated the amount needed to open the required L/Cs.

The two countries are also planning the construction of a crude oil pipeline between the cities of Basra in Iraq and Abadan in Iran and have signed a memorandum of understanding for the development of the jointly owned Parviz and Khorramshahr oil fields.

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