Iranian Oil Minister Mohsen Paknejad announced the agreement Saturday in a meeting with Armenian Minister of Territorial Administration and Infrastructure Davit Khudatyan. Paknejad said Armenia had stood by Iran during difficult times and reiterated Tehran's readiness to deepen cooperation with its neighbor.

The ministers discussed potential collaboration in energy, including trade, engineering and technical services, refinery construction, and supplying Armenia with petroleum products, according to Paknejad.

He described Armenia as one of Iran's key neighbors and said both countries have significant potential to expand cooperation, particularly in the energy sector.

Paknejad said the two sides agreed to form a joint technical working group and urged that it begin work as soon as possible so progress can be reviewed at their next meeting.

Iran and Armenia currently cooperate under a gas-for-electricity swap arrangement. Paknejad said Tehran has proposed a new commercial model for natural gas exports that would go beyond the existing framework.

He said implementing the proposal would require evaluating existing infrastructure and assessing the feasibility of expanding gas trade not only with Armenia but also to other markets via Armenian territory.

Paknejad added that the proposal involves technical and commercial complexities and will require detailed expert studies by the joint working group before it can be implemented.