The agreement was approved at a meeting of the Azerbaijani-Cuban intergovernmental commission in Baku on Tuesday and is expected to be signed in the "near future," the minister said.
"This is certainly a very interesting direction. And we hope that the work which is due to be completed over the next year will become a reality," Garayev told journalists after the meeting.
Last year, Cuba produced around 4 million tons of oil, while Azerbaijan's oil production reached 45 million tons.
At the meeting the sides also discussed cooperation in medicine, food production, culture and tourism. The first meeting of the commission was held in Havana in November 2007.