Arabian Pipes wins $13m oil goods order from Saudi Aramco
Arabian Pipes will supply OCTG pipes to the oil and gas giant through the six-month deal
Arabian Pipes Co has won $13m (SAR49m) steel pipes order from oil and gas giant Saudi Aramco, a regulatory filing has revealed. According to a filing on Tadawul, the contract was awarded on 11 December, 2018 and will see Arabian Pipes supply oil country tubular goods (OCTG) pipes from the second quarter of 2019.
The financial impact of the contract, which will last six months, will be during the second quarter of 2019, the Saudi bourse missive read.
OCTG pipes are used in both onshore and offshore oil and gas production. They include threaded drill pipes, casing, and tubing that are used in drilling, equipping, and operating oil and gas wells.
The news comes four months after Saudi Steel Pipe Company was forced to temporarily shut its large diameter pipe factory, a move that allowed to the firm to carry out crucial maintenance work at its facility that manufactures materials used in the oil and gas sector.
The end of September this year saw the firm’s minority shareholders agree to sell a 47.8% equity stake to Luxembourg-based steel pipe maker Tenaris for $144m (SAR540m).
News of this equity sale came weeks after Saudi Steel Pipe Co reported an $11.1m (SAR41.8m) net loss in H1 2018. An impairment loss of $5.6m (SAR21m) for one of the company's bending units was largely to blame for the double-digit loss in the first six months of the year.