Iran has signed an agreement with Brazil to supply crude oil to a new refinery in the South American country, according to Iranian media.

Abbas Kazemi, managing director of National Iranian Oil Refining and Distribution Company (NIORDC), said that “an investor in Brazil has announced readiness to establish an oil refinery guaranteeing that all the required oil will be supplied by Iran.”

Kazemi said that a deal on the construction of a 300,000 barrel-a-day (b/d) refinery had already been signed as part of Iran’s new strategy of building oil refineries overseas.

“It has been agreed that the private sector in Brazil will make 50 per cent of the investment while the remaining portion will be carried out by Iran,” Kazemi was quoted by Mehr News Agency as saying.

The removal of nuclear-related sanctions against Iran, expected later in 2016, could open up new export opportunities for Iranian oil producers. The majority of Iranian crude is currently sold into Asia.