," said Zangeneh.
The planned oil treatment facility would be able to process 600,000 b/d of oil. A Chinese company is to cooperate with Brazil in the financing and manufacturing of this facility.
Zangeneh said Iran would welcome the Brazilians' cooperation in Iran's IPC-based oil and gas projects. "It seems that the Brazilians are seeking to cooperate with Iran in the refining sector."
"We have not so far exported products to the American market and the American continent will be our final market for oil exports and this issue needs to be studied," said the Iranian minister.
Investment in Oil Projects
Filho said after his talks with Zangeneh that examining opportunities and grounds for cooperation between the two countries would be conducive to investment in oil projects.
He said representatives of Brazil's petroleum industry were intent on visiting Iran, adding: "After considering request for the Brazilian companies' technology and technical knowhow in Iran, we will review the expansion of cooperation."
"Undoubtedly, the presence of Petrobras here and examining solutions would be of help in future cooperation and investment," he said.
"We want to see what kind of help and which solution we can present in the technology sector because we already know that Iranian companies and other foreign firms like France's Total, which is a strategic partner of Petrobras in the world, would be ready for investment in Iran's oil and gas projects," said Filho.
He said that Iran's Zangeneh had welcomed Petrobras' cooperation in deep-water drilling in the Caspian Sea oil projects.
"Today, Petrobras is drilling for oil and gas in the depths of nearly seven kilometers offshore Brazil. Therefore, we have abundant savvy and technology in these sectors and we hope to be able to work together here," said Filho.
"I will hold talks with Iran's ambassador to Brazil and also with our ambassador here in Tehran in order to set a date for the future visit of a Petrobras delegation which would examine grounds for cooperation," he added.
Oil Market Balanced
Separately, Zangeneh gave positive assessment of Iran's oil market, saying: "I see the market in a balanced state."
"The compliance of members of the Organization of the Petroleum Exporting Countries (OPEC) [with an oil production cut deal] is in good conditions and the members' convergence about the supply cut agreement has not dropped over the past six months and has been on the rise," he said.
"Cooperation between non-OPEC countries, particularly Russia, is good with regard to the oil supply cut, and in my view the market is headed towards balance," said Zangeneh.
"The global agreement for output cut will continue by the end of the current year and there have been talks about its extension, but not finalized yet. But in my view, the level of crude oil storage still remains high," he added.
Zangeneh said Iran welcomed cooperation with non-OPEC producers, adding: "Cooperation does not mean oil production cut; however, it is unlikely that Brazil would join the supply cut agreement under the current circumstances."
Third Party Needed in IP Pipeline
Zangeneh also referred to Iran-Pakistan gas pipeline, saying he thought that Iran would finally start pumping gas to its eastern neighbor.
"However, based on our experience in recent years I think that a third party is needed to settle the Iran-Pakistan deal (in terms of finance and other commercial procedures)," he said.
"It means that a third company would agree to build the Pakistani side of the IP pipeline so that we would have peace of mind with regard to payment of gas cost," he added.
"The Pakistanis say they don't have money to build their side of the pipeline and there are concerns that even if the pipeline is built and gas is exported, they may not have capacity to pay money to us for gas exports," said Zangeneh. "A number of oil and gas companies in the world are willing to be engaged in the IP project as third party; however, no conclusion has been achieved yet."
Swap Operations Crucial
Zangeneh also touched on the resumption of crude oil swap, saying: "The important issue has been the resumption of crude oil swap operations. We can have cooperation with the three countries: Turkmenistan, Kazakhstan and Azerbaijan in this regard. Of course, we are in the process of receiving oil from international companies."
He said that swap deals are often for six months up to one year. He added that changes of parameters and price criteria needed to be taken into consideration in the swap deals.
"In swap operations, we compete with the Mediterranean market. Supplying oil in the Persian Gulf market must be more profitable than cargoes headed via the Mediterranean," he added.
Zangeneh said: "We are not after profits from crude oil swap operations and revival of these operations is of higher significance to us."
Iran resumed crude oil swap from the Caspian Sea after a seven-year hiatus.
Through swap operations, Iran will receive crude oil from the Caspian Sea littoral states at Neka Port and deliver the same volume to clients in the Persian Gulf at Kharg oil terminal.
In the first swap, 360,000 barrels of crude oil was transferred from Neka to Tehran oil refinery.
The oil swap project was halted in June 2010 at the order of then minister of petroleum. But when Zangeneh took office as Iran's petroleum minister in 2013 he insisted on the revival of the project noting that oil swap would give Iran a more active role in the oil trading of Caspian Sea states.
Iran-Russia Oil Deal on Track
Zangeneh also said that Iran was waiting for Russia to start receiving crude oil supplied by Iran.
"Iran has no problems in this regard. The Russian side had some banking issues, which have been resolved to some extent. For us, the banking issues have been resolved too," he said.
Zangeneh said a Russian bank was expected to open a letter of credit (LC) and handle relevant payments.