Iran to Sign Firm Contract with Tubacex May 24

Iran will sign a contract worth $550mn with Spanish Tubacex May 24 to produce corrosion-resistant alloy (CRA) pipelines, needed for South Pars.

This will be the first agreement in Iran's oil and gas sector to be signed with a foreign company after the elimination of nuclear sanctions in January 2016. Iran has signed dozens of memoranda of understanding with foreign companies, but none of them has developed into an agreement yet.

According to a report, released by the oil ministry, the buyer is Iran’s Mobarakeh Steel Company and Tubacex will supply 600 km of CRA pipes needed for Pars Oil and Gas Company, operator of giant South Pars.

“Tubacex, in co-operation with Japanese JFE, is one of the few companies in the world licensed to produce the standard CRA and now it is obliged to deliver this technology to Iran’s Mobarakeh Steel Company as well,” the report said.

According to the ministry’s report, Iran has been importing the total needed CRA from abroad for its projects, but plans to become self-sufficient in this sector.

Azerbaijan desk