Iran’s Cabinet approved a four-year $15 billion plan to jointly develop oil fields with Iraq that will increase the nation’s production capacity by 550,000 barrels a day, the Islamic Republic News Agency reported.
Iran, which holds the fourth-largest crude oil reserves in the world according to U.S. Energy Information Administration estimates, has seen output cut by international sanctions imposed over its nuclear program.
The Islamic Republic in January canceled its contract with China National Petroleum Corp. to develop the South Azadegan oil field near the Iraq border because of project delays.
The IRNA report didn’t indicate how the cooperation with Iraq would be funded. Iran’s estimated capacity is 3.5 million barrels a day with output of 2.78 million barrels a day.
A version of this article appeared in the print edition of The Daily Star on December 30, 2014, on page 8.