Italy's Saipem, Iran's NPC Explore Grounds for Petrochem Coop.

According to NIPNA, the National Petrochemical Company's official news agency, talks were held between NPC's Managing Director Reza Norouz-Zadeh and the Italian firm's high-ranking officials on the sidelines of "Milan Plast 2018 Exposition" in Italy.

"Negotiations revolved around optimizing and revamping production methods," Norouz-Zadeh said, adding that the two sides explored grounds for providing Iranian companies with their technology and licenses to develop new units in Tabriz, Kermanshah and Asalouyeh petrochemical complexes.

Saipem is the global leader in drilling services, as well as in the engineering, procurement, construction and installation of pipelines and complex projects, onshore and offshore, in the oil and gas market, which provides a full range of services based on engineering, procurement and construction and/or engineering, procurement, construction and installation contracts, Financial Tribune reported.

Referring to close cooperation between Saipem and multinationals like UOP and France's Axens, NPC's managing director noted that the company can play a major role in development projects in the Mokran region of Sistan-Baluchestan Province.

"The Italian firm expressed interest in launching joint ventures to curb associate petroleum gas levels in the Pars Special Economic Energy Zone," he said.

Associated petroleum ga is a form of natural gas found with petroleum deposits. It is often released as a waste in the petroleum extraction industry. When it is burnt off in gas flares, it is referred to as flare gas.

According to Norouz-Zadeh, NPC is also in talks with Casale SA, a privately-owned Swiss Company that is willing to provide Iranian companies with technology and licenses.

Saipem had signed a memorandum of understanding with Iran in 2016 for developing Tous Gas Field in Khorasan Razavi Province.

The Italian firm, whose 43% of shares belong to Eni, signed a memorandum of understanding with Parsian Oil and Gas Development Company for revamping Pars Shiraz and Tabriz refineries.

Iran holds some of the world's largest crude oil and natural gas reserves, but its petrochemical industry is comparatively underdeveloped.

Tehran says its new petrochemical ventures require over $70 billion in investments that should mostly come from foreign sources.

NPC aims to expand Iran's petrochemical production map under a plan covering new investment areas from West Azarbaijan Province to central and southern regions across the Persian Gulf coast.