This excerpt taken from the PBR 20-F filed Jun 30, 2005.
Middle East Activities
In 2004, we signed a contract with Irans state-owned company National Iranian Oil Company (NIOC) for the exploration of Block Tusan in shallow waters of the Persian Gulf. We own a 100% interest in this block. The exploration will be carried out by our Iranian subsidiary Petrobras Middle East B.V., which was organized in October 2004. We are currently evaluating other exploration opportunities in the Middle East.