Global energy giant Royal Dutch energy giant Shell has signed a memorandum of understanding (MoU) with the National Petrochemical Company of Iran (NPC) for cooperation in the petrochemical industry.

The MoU was signed by NPC CEO Marziyeh Shahdaei and Hans Nijkamp, the head of the department for Iran affairs at Royal Dutch Shell.

Nijkamp was quoted by the media as saying that the signing of the MOU came after months of negotiations between the two companies.

Iran’s deputy petroleum minister for international affairs, expressed optimism that petrochemical projects between Shell and the NPC would be launched

“We believe that we can have joint projects in the petrochemical field with the NPC,” he said.

“This document will provide us with a framework for more project discussions with the NPC.”

Shahdaei, for her part, emphasize that the NPC has serious plans to increase its production to 160 million tons per year by 2025 from the current volume of 60 million tons per year.

Also, Amir-Hossein Zamaninia, Iran’s deputy petroleum minister for international affairs, expressed optimism that petrochemical projects between Shell and the NPC would be launched soon.

“With the wisdom that we see in the people working in our country’s petrochemical industry, without a doubt the projects of the NPC will be executed sooner than oil and gas projects,” he said, according to Shana.

The company was involved in the development of Iran’s Soroush and Norouz oil fields in Persian Gulf waters. It was also planning to develop a gas liquefaction project called Persian LNG in Iran’s South Pars energy zone. However, it later cancelled its plans to that effect as a result of the sanctions.