Irish oil company Bula has signed an agreement with the Iraqi State Oil Marketing Organisation (SOMO) to buy one million barrels of crude oil.
The deal has been granted approval by the committee established by United Nations Security Council which approves trade with Iraq under UN resolution 661.
The moving of a million barrels of Iraqi crude from the port of Ceyhan in Turkey is scheduled to take place in May 2001.
Bula has agreed to sell the crude - which it will lift as a result of the contract with SOMO - to an international oil company.
