German engineering giant Siemens said Wednesday it has signed a far-reaching agreement with Iranian group MAPNA to help modernise Iran's energy infrastructure.

Siemens and MAPNA had signed a memorandum of understanding "to jointly develop the roadmap for the extension and optimization of the overall Iranian power and electrification system," the German company said in a statement.

As part of that agreement, MAPNA would acquire technological knowhow to manufacture Siemens gas turbines in Iran and the parties would cooperate to deliver more than 20 gas turbines and associated generators over the next decade.

"As a first project under the license agreement, both companies signed a contract for the Bandar Abbas power plant for which Siemens will deliver two F-class gas turbines and generators. The first unit will be shipped to Iran shortly," the statement said.

"With these important agreements we reinstall the long-term energy partnership between MAPNA and Siemens," said Siemens chief executive Joe Kaeser.

He said the German giant would "help the Iranian people to develop a sustainable, affordable and modern electrification system to support the country’s economic and social development."

The contracts and the MoU were signed in the presence of Joe Kaeser, MAPNA CEO Abbas Aliabadi, and witnessed by German economy minister Sigmar Gabriel and Iranian energy minister, Hamid Chitchian.

Siemens said it had been active in Iran since 1868.

In January, western powers ended a political standoff with Tehran dating back to 2002, lifting sanctions after the UN's atomic watchdog confirmed Iran had complied with its obligations to curb its nuclear programme.