BAGHDAD, Aug. 2 (Xinhua) -- Iraq and neighboring Kuwait on Friday signed a contract with the British energy advisory firm ERC Equipoise to prepare a study to develop joint oil fields on the border between the two countries.

Abdul Mahdi al-Amidi, director general of Iraqi Oil Ministry's department of contracts and petroleum licenses, said the signing is "an important step to strengthen bilateral relations," according to a ministry statement.

The signing also emphasizes "the keenness of the (Iraqi) government and the ministry to resolve all outstanding issues between the two countries."

Al-Ameidi said the British advisory firm "will provide us with all information related to oil reserves and other information, which paves the way for joint investment between Iraq and Kuwait."

Meanwhile, the ministry's spokesman Asim Jihad said signing the contract with the British advisory firm "will prepare technical studies of the joint border oil fields."

The border oil fields between Iraq and Kuwait had been a source of tension between the two countries before and during the 1990 war, as Iraq repeatedly accused Kuwait of drilling wells that crossed the border and pumped oil from Iraqi territory, which was denied by Kuwait.

The contract came on the anniversary of the 1990 war launched by the Iraqi former leader Saddam Hussein against Kuwait. Both Iraq and Kuwait are seeking to turn the page of the past.