Iran and Iraq are moving closer to building a pipeline to transfer crude oil from the northern Iraqi fields of Kirkuk via Iran, Iran's Oil Minister Bijan Namdar Zanganeh was quoted as saying in a media report.

Zanganeh and his Iraqi counterpart Jabar al-Luaibi also reached an agreement on an international company that will conduct feasibility study on the project, Zanganeh was quoted as saying by Iran Daily, which cited Shana.

Iraq and Iran signed a memorandum of understanding in February to study the construction of the pipeline, the report said.