Iran on Thursday awarded a major contract to a German company over the development of a petrochemical project in the country�s southwestern city of Masjed Soleyman.

The contract has been awarded to Abels Decker Kuhfu� Lenzen (ADKL) and has an initial value of �2 billion which will be increased to as high as �10 billion in the future.

Accordingly, the ADKL will cooperate with Masjed Soleyman Petrochemical Industries Company over providing the funds, transferring the technology and implementing contracts for the project within the framework of engineering, procurement, construction and finance (EPCF).

The deal was signed during the visit to Iran by Garrelt Duin, the state minister for economic affairs and energy of Germany�s Nordrhein-Westfalen State.

Yousef Davoodi, the managing director of Masjed Soleyman Petrochemical Industries Company, told reporters after signing the contract with ADKL that his company is interested in working with European enterprises.

Davoodi also expressed hope that this would be the start of a mutually beneficial cooperation with ADKL.

Also, ADKL�s Bernd Lenzen told reporters that �2 billion will be invested in the first phase of a petrochemical project in Masjed Soleyman.

Lenzen added that this will be increased to �10 billion in further phases.

Masjed Soleyman Petrochemical Industries Company says on its website that a petrochemical project - that it plans to develop in northern parts of Khouzestan province - will produce urea and ammonia as its key products. The daily production target of each in the first phase will be 3,250 tons of urea, 2,050 tons of ammonia.

By Press TV