The Iraqi cabinet has given approval for a Basrah-Haditha oil pipeline project, a statement from the Prime Minister's office said on Monday.

The pipeline will cost about 5.97 trillion Iraqi dinars ($4.56 billion), the statement said.

Iraq's oil ministry said in August that the proposed pipeline would transport crude oil to the country's central and southern regions.

Iraq's current oil output stands at about 4 million barrels per day, oil ministry officials say.