PressTV -- Iran plans to construct an oil pipeline and terminal on its border with Armenia to increase exports of oil products to the country.

Iran's Deputy Oil Minister Noureddin Shahnazi-Zadeh said the two sides agreed on a contract for a 350-km pipeline that carries oil products to Armenia.

Armenia will receive 70,000 barrels of oil products through the proposed pipeline, he said.

Shahnazi-Zadeh added that the construction of the joint pipeline needs a 350-million-dollar investment.

"The construction of the pipeline and oil terminal would increase the exports of oil products to this northern neighboring country," he said.

Armenia hopes the pipeline help diversify its energy resources.