Iran says it plans to form a joint oil company with Azerbaijan in what could prepare both to cooperate over the exploration and development of hydrocarbon reserves in the Caspian Sea and elsewhere.

The announcement over the formation of the company was made by Amir Hossein Zamaninia, Iran’s deputy petroleum minister for international affairs and trading.

Zamaninia was quoted by Azeri media as saying that the company will be formed within the framework of a deal recently signed between the two parties.

Last month during a visit of Iran’s President Hassan Rouhani to Azerbaijan, the two countries signed "The Memorandum of Understanding on "Joint Development of Relevant Blocks in the Caspian Sea."

"According to the signed document, a joint oil company should be established between the two countries, and we are now seeking to establish it," Zamaninia said, adding that the deal will come into force in coming days.

While responding to a question about possible impact of US withdrawal from the nuclear deal on Baku-Tehran oil cooperation, the official said "I think that the withdrawal or not withdrawal of Washington form the Joint Comprehensive Plan of Action (JCPOA) will not affect the Iranian cooperation with Azerbaijan’s state oil company SOCAR."

Zamaninia further said that the JCPOA implementation is acceptable for Iran’s oil sector until the Islamic Republic is able to sell its oil, receive the oil money and finance for oil and gas projects.

The top official put the country’s oil export level at 2.6 million barrels per day, saying Iran’s oil export have witnessed a significant increase in the current month compared to the preceding months.

On 12 May, US President Donald Trump will decide whether he will leave or stay in a nuclear agreement that his predecessor Barack Obama sealed with Iran together with Britain, France, Germany, China and Russia.

Based on the agreement, Iran would limit certain aspects of its nuclear energy activities in return for steps by other signatories to lift the sanctions against the country.

Ever since taking office, Trump has been waging a war against the JCPOA, saying it needs serious improvements.

Iran has been insisting that it would not re-negotiate the JCPOA. Other signatories such as France and Germany have called on the US to stay in the deal. Russia and China have to the same effect denounced Trump’s efforts to abandon the Iran deal – as well as other key international treaties.