Iran, Tubacex Set up Speciality Pipeline Firms

Iran’s Mobarakeh Steel Company and Spanish Tubacex will establish three firms, two of them in Isfahan city and another in Kish Island, to produce corrosion-resistant alloy (CRA) pipelines, CEO of National Iranian Oil Company Ali Kardor said May 25, elaborating a deal signed May 24.

NIOC signed a €550mn ($630mn) deal with a 50-50 joint venture between Mobarakeh Steel Company and Tubacex May 24 to purchase 600 km CRA pipes, needed for giant South Pars project.

During the contract ceremony, deputy CEO of Tubacex Antonio Rafael said that it was the biggest tender in this industry for many years.

The deal was also the first agreement in Iran's oil and gas sector, 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 May 23, “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."

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