Iran and Iraq will sign a deal to build a pipeline that would transfer crude oil from southern Iraqi oilfields to refineries in Iran.

Iraq announced in May that it had agreed to begin discussions with Iran over the pipeline that will carry 200,000 barrels of Iraqi crude oil to Iran per day.

"By this contract the Iraqi crude oil will be imported and oil products will be exported," Iran's First Vice-President Parviz Davoudi told reporters. He further added that Iraqi Oil Minister Hussain al-Shahristani would visit Tehran in coming days.

Iraq's oil minister, Hussain al-Shahristani is now in Moscow for talks with Industry and Energy Minister Viktor Khristenko and senior oil executives.

Iraq presently faces constant fuel shortage and it is now looking to build four refineries. The country has asked Iranian firms to bid for such contracts across the country.

Shahristani said in May that Tehran is keen to construct the whole pipeline but Iraq would also consider other offers as well.

MMS/RE