Tenaris Secures $80 Million Contract with ChevronTexaco

ChevronTexaco Corp. and Tenaris have executed a five-year agreement for Tenaris to supply ChevronTexaco's international requirements for oil country tubular goods.

Under the agreement, valued at more than $80 million a year, Tenaris will manage the supply and delivery of the entire range of tubular products required by ChevronTexaco's operating affiliates outside of the United States. Helmut Porkert, chief procurement officer of ChevronTexaco, said, "We're pleased with the Tenaris agreement because we expect it to provide significant savings compared with our current costs, as well as to reduce company-owned inventory and to standardize on fewer products, while maintaining quality, safety and environmental performance."

German Cura, Tenaris Oilfield Services Director, said: "We are delighted that one of the oil and gas super-majors has chosen us to meet its international needs for OCTG products. This agreement marks a significant step in our efforts to be the leading supplier of tubular goods and services worldwide."

The agreement covers ChevronTexaco oil field operations in five regions -- Argentina, Canada, Europe, Nigeria and Venezuela -- with the potential for expansion to other areas. Tenaris will be responsible for managing the entire supply chain of OCTG, including pipe design, manufacture, transportation and inventory management, together with comprehensive management services customized to the needs of each of ChevronTexaco's operating affiliates.