Representatives of the Iraqi and Egyptian oil ministries have signed an agreement that opens up exploration opportunities and strengthens downstream contracts between the two countries.

In a statement, the Iraqi oil ministry said that the new agreement provides scope both for increased exploration and the construction of new pipelines and storage facilities.

"We are going to play an important role in development and cooperation. The future will witness strategic cooperation in the field of oil and gas, as well as in economic, cultural and security fields," said Egypt's oil minister Sameh Faimi.

The Khaleej Times reports that no financial details of the accord were given.

Iraq has been moving quickly to increase its total production in recent months and last week, Cairn Energy's chief executive Mike Watts told the Herald that the company is focused on putting in a strong bid for new exploration licences.

The company will point to the successes it has enjoyed in Rajasthan, he said.

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