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Saudi Aramco awards $61m supply contract to Arabian Pipes

Arabian Pipes will supply LSAW steel tubing to the energy giant from its Jubail factory, starting Q3 2019

Arabian Pipes will deliver its material to Saudi Aramco during Q3 2019.
Arabian Pipes will deliver its material to Saudi Aramco during Q3 2019.

Tadawul-listed Arabian Pipes Company has signed off on a multimillion-dollar contract to supply submerged steel pipes to state-owned Saudi Aramco.

The contract is valued at $61m (SAR299m), and Arabian Pipes said it will start to deliver the products in Q3 2019.

As part of the contract, Arabian Pipes will supply longitudinally submerged arc welded (LSAW) steel pipes that are commonly used to carry oil, gas, or other liquids across long distances both onshore and offshore.

The business did not disclose the volume or the size of the pipes, but stated that the pipes will come its factory in Jubail, and be delivered during an 11-month window.

Arabian Pipes said the financial benefit of the deal would be seen in its books by Q1 2020.

News of the deal comes days after Saudi Aramco and France’s Total signed an agreement with South Korean construction company Daelim for the kingdom’s first polyisobutylene (PIB) factory.

The factory will produce thousands of tonnes of the PIB chemical, which is used in adhesives, lubricants, and fuel additives.

Front-end engineering and design of the plant will start in February and conclude in the final quarter of 2019, with full project completion due in 2024.

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Construction Week - Issue 738
Apr 21, 2019