Surgutneftegas, TMK Reach $1B Tubular Goods Deal

OAO Surgutneftegas and OAO TMK have entered into a long-term strategic partnership agreement. The agreement was signed in Moscow by Surgutneftegas CEO Vladimir Bogdanov and TMK CEO Konstantin Semerikov.

This long-term strategic partnership agreement is valid for three years, with possible prolongation. Looking to strengthen their market positions in Russia and abroad, the parties agreed to cooperate in the production and supply of steel pipes. Steel pipes produced by TMK plants will be supplied to Surgutneftegas to meet its oil production needs. The volume of tubular goods shipped within the frames of this agreement is valued at US$1 billion.

This agreement between Surgutneftegas and TMK involves the coordination of medium-term and long-term joint activity for the development of new types of tubular goods according to the Scientific-Technical Cooperation Joint Program for 2007-2010, approved by both companies in 2006.

Founded in 2001, TMK is the largest pipe producer in Russia and one of the three global market leaders. In 2006, TMK sold approximately 3 million tonnes of pipes. TMK supplies to companies in more than 60 countries. TMK production facilities are located in Russia and Romania:

--Volzhsky Pipe Plant
--Seversky Tube Works
--Taganrog Metallurgical Works
--Sinarsky Pipe Plant
--Orsky Machine Building Plant
--SC TMK-Resita SA.