The deal with Iran comes at an opportune time for the company, which has been hit hard by a prolonged oil price slump that has prompted oil majors to cut investment and seek lower prices from suppliers, Reuters reported.

Saipem, controlled by Eni and Italian state lender fund FSI, said the MoU had been signed with the Parsian Oil & Gas Development Co on Monday and involved the revamping and upgrading of the Pars Shiraz and Tabriz refineries.

No financial details were provided.

Earlier on Monday, a source close to the matter said Saipem would announce later in the day a deal worth between $4 billion and $5 billion to build 2,000 km (1,240 miles) of pipeline in Iran.

The agreement was signed on the first day of the official visit to Rome of President Hassan Rouhani.

Earlier this month, international sanctions were lifted on Iran following implementation of its nuclear agreement with world powers.