"Italy's Saipem signs Iran deal as rights issue kicks off"

Saipem signed a memorandum of understanding on Monday to cooperate on major oil and gas projects in Iran, as the Italian oil contractor's giant 3.5 billion-euro ($3.79 billion) rights issue began.

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.

Saipem, controlled by Eni and Italian state lender fund FSI, said the MoU had been signed with the Parsian Oil & Gas Development Co 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.