Italy's Saipem inks Iranian oil and gas deal

MoU signed in the presence of Iranian President Hassan Rouhani and Italian Prime Minister Matteo Renzi in Rome last week

Saipem is looking to expand its activities in Iran.
Saipem is looking to expand its activities in Iran.

Italy’s Saipem, the global drilling services provider has announced signing a Memorandum of Understanding to work on major oil and gas projects in Iran.

The MoU was signed in the presence of visiting Iranian President Hassan Rouhani and Italian Prime Minister Matteo Renzi in Rome on January 25.

The MoU, signed with the Parsian Oil & Gas Development Company, envisages discussions aimed at Saipem’s potential cooperation in revamping and upgrading the Pars Shiraz and Tabriz refineries, Saipem said in a press release.

Saipem, which is controlled by Italy’s Eni and state lender fund FSI, is looking to expand its activities in Iran as Tehran wants to sign contracts with European companies following the lifting of western sanctions.

Renzi said on January 25 that Rouhani’s visit can play a fundamental role in the stability of the Middle East.

Renzi told reporters after meeting privately with Rouhani that the landmark deal on curbing Iran’s nuclear activities ‘is just a first step for a new season of peace and prosperity, not just in Iran, but in all the region’.

Italy was among Iran’s top trading partners, with $7.59bn in trade dropping to $1.62bn after the sanctions. Italian officials hope to rebuild that to $3.25bn in exports alone through 2018.

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