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Tubacex receives the largest contract in its history, worth up to $1,000 million.

Date: October 2, 2022 Time: 18:27:24

Tubacex has been awarded the largest contract in its history with the Abu Dhabi National Oil Company (ADNOC). about 1000 million euros, value over 30,000 tons of product and ten years of duration, forfor the supply of complex solutions aimed at gas production in the Middle East. Under this agreement, the company undertakes to build a new pipe factory and the tie-in in Abu Dhabi of the Middle East’s first OCTG pipe plant, which will be operational in 2024 and employ 150 people.

This award is added to other recent multi-year agreements signed in recent weeks for the production of umbilicals, aerospace and nuclear tubing, which together provide Tubacex with a total portfolio of over 1500 million euros. Since the company’s portfolio was 500 million euros at the end of May, the current figure allows us to calculate that contract with Abu Dhabi National Oil Company about 1000 million euros.

The order was signed during the Make it in the Emirates event, a forum that brings together the largest industrial companies and investors in the United Arab Emirates to share their development plans and stimulate local investment, CNMV said and told Efe. ADNOC, one of the world’s leading energy companies, owned by the Emirate of Abu Dhabi, has an “ambitious plan” to increase its production capacity and maximize the value of the “enormous energy reserves of the Emirate in support of the economic growth and diversification of the United Arab Emirates (UAE)”.

According to the industry group, Tubacex is orienting its strategy “to be a long-term strategic ally for the comprehensive supply of CRA OCTG solutions”, with high corrosion resistance, including pipes and threads, in addition to other additional services – logistics. , inventory control and maintenance in a well- for extraction and production of gas.

Upcoming construction of a new plant in Abu Dhabi, with a $100 million investment that will employ 150 people., will allow “guaranteeing reliable supply for large-scale projects” such as the one signed with ADNOC. Likewise, it is “strengthening” its “positioning and commitment” to the Middle East, “a strategic region hosting the world’s largest volume of upstream and downstream gas activity.”

position gain

During the signing ceremony, Tubacex CEO Jesús Esmoriz assured that this agreement “strengthens” Tubacex’s long-term position “in a region currently immersed in an ambitious investment plan, promoting and strengthening our operating structure.” He added that with this new plant, the company will have three manufacturing plants in the region in Abu Dhabi, Saudi Arabia and Dubai. where it also has service centers and commercial offices.

With the signing of this “strategic agreement”, Tubacex “accelerates the implementation of its plan for diversification in line with the requirements of decarbonization” in which gas “plays an important role as an energy transition to green and low-carbon energy.” This contract is added to the contracts reached by the company in recent months, which in general and which have already placed their order book worth more than 1,500 million euros. On May 26, after the general meeting of shareholders, the company announced that its order book is 500 million euros.

According to the company, its “commercial positioning” has allowed it to sign “various framework agreements with the main agents of the industry, which will allow you to be anywhere you need to be.” As an example, he cited the OCTG product segment, “with a strategy focused on national oil companies with signing long-term contracts with a comprehensive solution and a commitment to local production.”

strategic agreements

He also mentioned signing “strategic agreements” with end users (ExxonMobil). In the umbilical segment, the company has reached agreements with major end users (Nexans, Aker, TFMC and Mfx) and strengthened its presence in the North Sea through the consolidation of TSS Norway and “expanding the service and solution offering.” The list of outstanding orders also includes “significant orders from EDF in the nuclear sector and orders for instrument tubes” in which the company “continues to grow its business, focusing primarily on the US market.”

Tubacex notes that in recent years “and despite the crisis experienced by the sectorthe company has integrated additional products and services into its company perimeter.” In this sense, it has continued to invest in the construction of its own factories, as well as the acquisition and expansion of others in Canada, Norway, Saudi Arabia, Dubai, or the United States, among others, in recent years, resulting in a “global group with 20 own manufacturing plants, 12 warehouse and service centers and a wide commercial presence in over 30 countries.”

In order to “carry out projects with great guarantees”, Tubacex “is committed to promoting its operating structure in the main destination markets of its products”, including the Abu Dhabi pipe and thread plant or recent manufacturing centers and service centers. in Guyana, Brazil and Kazakhstan. In this way, the company “ensures the stability of its business by orienting its strategy towards improving the project’s efficiency and reducing its environmental impact”, while maintaining “diversification towards a low-emission energy business or entering markets in developments such as hydrogen or CO2 capture.”

Source: www.lainformacion.com

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