Teheran has reached an agreement with Iraq to build a pipeline that will feed Iraqi crude to an Iranian refinery, Iran's official news agency reported Thursday.
The agreement marked another step in strengthening relations between two majority Shi'ite 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 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.