Russian oil giant Rosneft has signed long-term tubular supply contracts with Tubular Metallurgical Company (TMK) and with Chelyabinsk Pipe Rolling Plant (ChelPipe) at the 21st St. Petersburg International Economic Forum, which is being held from June 1-3.
Both formula pricing based long-term contract terms are over five years and tubular supplies from both contracts will start in the second half of this year, Rosneft said on Friday.
The documents were signed by Rosneft Chief Executive Officer Igor Sechin and chairmen of board of directors of the two companies, Dmitry Pumpyanskiy at TMK and Andrey Komarov at ChelPipe.
Commenting on the production casting and tubing supply contract signing with TMK, Sechin said, “The agreement shall stimulate development of domestic production and become an important step in implementing the import substitution program. Moving to long-term contracts will enable enhancing efficiency of both companies’ operations and assure transparent pricing of the procured tubulars.”
Last December, Rosneft and TMK signed a Memorandum of Partnership in implementing a program for tubular products substitution for offshore projects. Within the cooperation framework, the pair will explore an opportunity of using the TMK’s current products for Rosneft’s offshore projects, as well as manufacturing new types of tubulars based on the order of the oil company.
Upon signing the long-term contract with ChelPipe, Sechin said that the cooperation with one of Russia’s largest petroleum tubular manufacturers will improve the profitability of the company’s business.
Offshore Energy Today Staff