The agreement was signed by the heads of Iraq's and Syria's state oil companies in Washington, DC, on Friday, under the supervision of US Energy Secretary Chris Wright, CNBC reports.
The pipeline, which has been shut down since it was damaged during the 2003 US invasion of Iraq, runs from Kirkuk in northern Iraq to Syria's Mediterranean coast and could reach a nominal capacity of 700,000 barrels per day, according to the US Energy Information Administration.
Iraq, OPEC's second-largest oil producer, has been hit hard by the blockade of the Strait of Hormuz, with its oil production falling to 1.9 million barrels per day in June, down from around 4.2 million barrels per day in February.
