New Chapter in Iran-Brazil Oil Cooperation
Iran and Brazil have agreed to come closer as the latter has technology and the former is rich in hydrocarbon. Brazil's Minister of Mines and Energy Fernando Coelho Filho recently travelled to Tehran and met with Iran's Minister of Petroleum Bijan Zangeneh.
After their talks, Zangeneh said: "The Brazilians have suggested that Iran supply oil to a refinery which is planned to be built in that country. Iran has also offered to Brazil's Petrobras the development of South Pars Oil Layer."
Coelho was not visiting Tehran for the first time. He travelled to Tehran in December 2016 when he said in a meeting with Zangeneh that strong banking relations would guarantee oil and gas cooperation.
Filho's official visit was aimed at driving Iran-Brazil oil talks into a new phase. These talks started in March 2015 when Iran's Deputy Minister of Petroleum for International Affairs and Commerce Amir-Hossein Zamani-Nia welcomed Brazil's then minister of development, industry and trade, Armando de Queiroz Monteiro Neto, in Iran's capital. During those talks, Tehran expressed its readiness to have cooperation with Brasilia in the manufacturing of downhole and wellhead drilling equipment for the purpose of deep-water production, as well as in the development of oil fields within the framework of new model of oil contracts, known as "Iran Petroleum Contract" (IPC).
Last March, Zamani-Nia met with Brazil's Ambassador to Tehran Rodrigo de Azeredo Santos and discussed grounds for oil and gas cooperation. The Brazilian side had shown inclination for purchasing crude oil from Iran.
After the last meeting between Zangeneh and Filho, Zamani-Nia told reporters that there was potentiality for cooperation between the two countries in many sectors.
"But since cooperation between the two countries does not enjoy a long history, it is a little bit difficult to prepare the ground for the start of cooperation," he said.
He said banking relations between Iran and Brazil would be reestablished soon after an Iranian delegation comprising representatives from the Central Bank of Iran and Iranian private banks travelled to that country.
SPOL Offered to Petrobras
Zangeneh said Brazil's state-run major Petrobras would send a delegation of managers to Iran to discuss development of the South Pars oil layer and cooperation in the Caspian Sea oil projects.
Zamani-Nia said Petrobras was equipped with required technology to develop the oil layer of South Pars, but it lacked sufficient finance, at least for now.
Denmark's Maersk had held talks for the development of the oil layer, but the purchase of its oil stocks by France's Total worried Iran. The reason is clear: Total is the operator of the Qatar-owned section of South Pars which is jointly owned by Iran and Qatar. The two countries have been vying for recovery from South Pars and Total's acquisition of Maersk would give rise to conflict of interests.
"Over the coming three to four months, we will hold intensive trade talks with oil companies," said Zangeneh.
Brazil's interest in cooperation with Iran is not limited to oil and gas sector. The South American major economy is also willing to manufacture electric and gas-fueled buses in Iran.
Zangeneh and Filho also discussed manufacturing of oil equipment in Iran to be used in Iran and also be exported to countries in the region.
"The Brazilians have said that a group of Brazilian industrialists are to travel to Iran in coming months. Iran welcomes such a visit," he said.
Oil Supply to Brazil Refinery
Brazil renewed its request for Iran to supply crude oil to a refinery it plans to build in the future.
"It was agreed that an international consultant be hired by Iran to review the Brazilian party's proposal in terms of its concerns and requests, and then give its views,