Iraq has agreed to work in collaboration with major oil firms to construct a water injection plant in the south of the country.
The multi-billion dollar water injection plant will help increase crude oil production from Iraq's southern oilfields.
The project will be led by ExxonMobil on behalf of foreign oil firms, according to Dow Jones Newswires.
International oil firms including BP, Lukoil Holding, ENI and Royal Dutch Shell have also expressed interest in setting up water injection plants in the country.
Thamer Ghadhban, energy adviser to the Iraqi Prime Minister, said that the government has issued heads of agreement to two firms to enter the front end engineering and design phase.
