NIOC signs $550M pipe deal with Spanish-Iranian consortium

Business Materials 24 May 2017 14:18 (UTC +04:00)

Tehran, Iran, May 24

By Mehdi Sepahvand – Trend:

The state-owned National Iranian Oil Company (NIOC) signed a $550 million contract on May 24 with a consortium composed of Spanish Tubacex and Iranian Esfahan Steel Company for providing CRA (corrosion resistant alloy) pipes, NIOC told Trend.

This is the first contract with a foreign firm after the removal of international sanctions in January 2016.

Under the contract, the Spanish-Iranian consortium will provide 600 kilometers of CRA pipes for Pars Oil and Gas Company, operator of giant South Pars gas field.

The technology for manufacturing the CRA pipes will be transferred to Iran as well by the Spanish company, NIOC said.

Tubacex is a global leader in manufacture of stainless steel and high-alloyed seamless tubes. It has production plants in Spain, Austria, China, Italy, the United States and India, providing tubes for oil and gas, petrochemical and power generation industries.

Iran has been importing CRA entirely from abroad and this is the first time that it plans to produce the needed CRA pipes domestically.