Iran's Society of Iranian Petroleum Industries Equipment Manufacturers (SIPIEM) signed a 1.6 billion euro contract with a Spanish company to manufacture high-tech equipment and components for its oil and gas, according to Tehran Times.

The SIPIEM also signed another contract with a Chinese company to transfer technology to Iranian oil industry.

“Iranian manufacturers have the potential to supply the oil industry with $20 billion worth of domestically-made goods and equipment this year, which began on March 20,” an official said earlier.

Oil Minister Rostam Qasemi has said that the economic sanctions against the Islamic Republic “will not be effective enough to hinder progress of the country’s oil industry.”