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Russian steel pipe maker bidding to supply Iran’s energy industry

Russian steel pipe maker bidding to supply Iran’s 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 announced on Wednesday.

TMK wants more and bigger contracts as Iran's energy industry revives following the lifting of international sanctions.

“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 in an interview with the WSJ.

After decades of economic isolation Iran’s aging oil equipment needs 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 three million barrels of crude per day and aims to boost production by one million barrels.

READ MORE: Iran prepares to resume oil deliveries to Europe

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