Saudi Steel Pipe signs extension with Saudi Aramco
Welded pipe maker adds extra year to oil transportation supply
Saudi Steel Pipe Company has signed its second major supply deal in a week by signing an extension contract with Saudi Aramco to transport oil.
The deal adds to the existing five-year agreement between the pipe maker and Saudi Arabia’s biggest oil exporter, and will last until November.
“This contract will favorably reflect the sales and profits of the company during [the] extension period,” Saudi Steel Pipe told the Tadawul stock exchange in a notification.
On 30th December the maker of welded steel pipes announced it had signed a signed a letter of award to supply ERW pipes for the second phase of an inter-refineries project by Abu Dhabi oil Refinery Company, also known as Takreer.
The company will supply 489 km of different sizes from the second half of 2011, a SAR 108 million contract signed in conjunction with main contractor, Korea’s GS Engineering & Construction Company.
Saudi Steel Pipe is also to invest SAR 80 million in the first phase of a new plant with TSM Tech, which will see the Korean firm take a 20% stake. The company’s shares fell 2.33% yesterday in Riyadh to close at SAR 24, a similar fall to the building and construction index, which lost 2.31% as the overall market rose 0.03% to 6,656.35.