A deputy oil minister in Iran said Tuesday there could be natural gas sent to power stations in southern Iraq during the current calendar year.

Ali Majedi, Iran's deputy oil minister for international affairs, said a pipeline from southern Iran across the border to power stations in Basra province is "currently under construction."

The pipeline will stretch from the Iranian port city of Asaluyeh, near the South Pars gas field, to Iraq.

Iran has boasted of its potential to reach new gas customers through South Pars, which is one of the largest gas complexes in the world. Iran shares the field with Qatar.

European officials have brushed off Tehran's gas offerings because of sanctions imposed on the Iranian energy sector. Though Iran secured some sanctions relief through an interim nuclear deal with Western powers last year, the U.S. government in particular has said Iran is not yet open for business.

Majedi said the pipeline from Asaluyeh could reach into the Syrian market when conditions return to normal in the war-torn country.

Oil found west of the Gulf of Suez
London (UPI) May 6, 2013 - Exploration company Sea Dragon Energy announced Tuesday it encountered oil while drilling into an Egyptian basin on the west side of the Gulf of Suez.

The company said its al-Amir SE 21 development well ran through a net 23 feet of oil. The company said the well flowed at a preliminary rate of 3,000 barrels of oil per day and 3.2 million cubic feet of associated gas.

Once the drilling rig is moved from the location later this year, the company said the well would be placed into production.

Paul Welch, Sea Dragon's chief executive officer, said the entire field, located west of the Gulf of Suez, should be able to produce at a peak rate of 11,500 barrels of oil and 12 million cubic feet of associated gas per day.

Sea Dragon is the minority partner in the concession, alongside operator Vegas Oil and Gas and Circle Oil PLC.

Sea Dragon's net production from Egypt is 1,680 barrels of oil equivalent per day.

Egypt holds an auction for oil and gas basins in July.