Economy, Business And Markets

Russian Pipe Maker Bids to Supply Iranian Energy Industry

Russian Pipe Maker Bids to Supply Iranian Energy IndustryRussian Pipe Maker Bids to Supply Iranian Energy Industry

Russia’s largest manufacturer of steel pipes for the energy sector is in talks with Iran to supply the country’s expanding oil and gas industry, the company has announced.

TMK wants more and bigger contracts, as Iran’s energy industry revives following the lifting of western sanctions, Russia Today reported.

“We have a program underway to supply some pipes through spot sales and are working on a longer-term contract which could include pipes to transport oil and gas as well as produce it,” said Vladimir Shmatovich, senior vice president for strategy and business development at TMK.

After decades of economic sanctions, Iran’s aging oil equipment need to get upgraded. The country needs $200 billion to restore and develop the energy sector after years of underinvestment, according to Tehran.

“If the infrastructure was old before sanctions, now it’s even older. They need everything—storage, tankers, refineries,” said Shmatovich.

With the world’s fourth largest proven crude oil reserves, Iran produces nearly 3 million barrels of crude per day and aims to boost production by 1 million barrels.

TMK was a major supplier of oil and gas pipes to Iran’s oil industry before sanctions were introduced. The company is one of the leading manufacturers of steel pipes for the oil and gas sector, operating at 30 production sites in Russia, the US, Canada, Romania, Oman, the UAE and Kazakhstan.

TMK’s clients include Shell, Total, ExxonMobil, AGIP, Saudi Aramco, Rosneft, Gazprom and Lukoil. It supplies products to more than 80 countries.