The Associated Press
The agreement marks another step in strengthening relations between two majority Shiite countries that fought a deadly eight-year war in the 1980s. The post-Saddam Hussein era rapprochement has worried some in the West.
Thursday's IRNA report has quoted Iran's deputy oil minister, Noureddin Shahnazizadeh, as saying a 32-inch pipeline will feed 50 percent of the crude to be processed at Iran's Abadan refinery.
The plant has a daily capacity of 430,000 barrels per day and sits about 1 mile (1.6 kilometers) from Iraq.
The refinery was destroyed during the 1980-1988 Iran-Iraq war but was later rebuilt.
