"Iran is one of Pertamina's priorities. We're serious about investing in Iran's upstream oil and gas, which will help Iran to increase its oil production," said Pertamina CEO Dwi Soetjipto in a statement following the signing of the agreement, Reuters reported.
Under the terms of the MoU, Pertamina has six months to conduct preliminary studies on two Iranian oilfields, namely Ab-Teymor and Mansouri oilfields.
The oilfields are located onshore and contain an estimated total reserves of more than 5 billion barrels.
Pertamina also said it would import its first shipment of liquid petroleum gas (LPG) from Iran in September.
Pertamina in May agreed to purchase 600,000 tons of LPG from NIOC.
Iran has been able to raise its crude oil output to around 3.6 million barrels per day (bpd) since the removal of anti-Tehran sanctions in January, and the country, the world's sixth-largest oil producer, may reach its pre-sanctions production levels in coming months.