“Exploration and development of hydrocarbon reserves in the Caspian Sea could be a turning point for the country’s oil industry,” Iranian media quoted him as saying on August 7.

He expressed the hope that Iran and Azerbaijan could boost their development activities in the south of the sea.

Earlier, Amir-Hossein Zamaninia, Iran’s Deputy Oil Minister for International Affairs and Trading, said that Iran and Azerbaijan had agreed to form a joint oil company in what could prepare both to cooperate over the exploration and development of hydrocarbon reserves in the Caspian Sea and elsewhere. He noted that the company will be formed within a deal recently signed between the two parties.

During a visit of the Iranian President Hassan Rouhani to Azerbaijan in March, the two countries signed “The Memorandum of Understanding on Joint Development of Relevant Blocks in the Caspian Sea.”

The document, signed by Parviz Shahbazov and Bijan Namdar Zanganeh is viewed as a turning point in ties between the two littoral states since it would allow to jointly make use of resources of the Caspian Sea, Azernews reports.

Previously, Baku and Tehran used to have serious disagreements regarding the delimitation of the Caspian Sea and joint energy cooperation.