TEHRAN - By signing a contract worth $630 million with an Iranian-Spanish consortium on Wednesday, Iran joined the world’s manufacturers of special pipes, which are of strategic importance in the oil and gas industry.

The contract was signed in Tehran by the National Iranian Oil Company (NIOC) and the consortium, which includes Spain’s TUBACEX and Iran’s Mobarakeh Steel Company. The project aims to produce pipes made of corrosion resistant alloy (CRA) for a network of 600 kilometers over three years.

Corrosion resistant alloys (CRAs) are commonly used in the oil and gas industry to protect metal assets in the exploration and production, refineries, and processing plants from corrosion.

 ‘Iran to become 1st CRA pipes manufacturer in region’

The CRA pipes contract was signed by Antón Azlor, the deputy managing director of TUBACEX, Ramin Qalambar Dezfouli, NIOC’s director for manufacturing and supplying logistics, and Mohammad Jan-Nesari, the managing director of Mobarakeh Steel Company in the presence of Iranian Oil Minister Bijan Namdar Zanganeh and NIOC Managing Director Ali Kardor.

Spanish Ambassador to Tehran Eduardo López Busquets was also present in the signing ceremony.

Addressing the signing ceremony, Kardor said that it is the eighth contract made for the domestic manufacturing of 10 groups of products, widely-used by NIOC, since two years ago following the emphasis Mr. Zanganeh has put in this due.

Contracts for seven groups have been previously signed, he added.

This contract is for manufacturing 600 kilometers of CRA pipes and the Spanish group will transfer related technology to Iran in a 50-50 joint venture, the official announced.

“We will construct an industrial complex in Isfahan City (center of Iran) at the first stage and two other ones in Kish Island (in the Persian Gulf) after that as the island is close to South Pars region (an energy hub in southwest of Iran)”, he added.

Domestic manufacturing of CRA pipes will go from zero to one hundred in the country, and Iran will be the first manufacturer of this product in the region, the NIOC managing director further highlighted.

The project will create direct and indirect jobs for 750 persons, Kardor informed.

 ‘CRA contract, main one for domestic manufacturing’

Addressing the same ceremony, Iran’s oil minister said that this contract makes manufacturing of this product domestic in the country within a period of less than three years. “It is not just for manufacturing of 600 kilometers of pipes. It will continue and it is not just for Iran but for the whole region”, Zanganeh asserted.

“About 2.5 years ago we specified 10 groups of products for domestic manufacturing; fortunately contracts have been signed for most of them and the contract for CRA is the most important one”, the minister underlined.

 TUBACEX’s biggest tender 

Antón Azlor, for his part, said: “TUBACEX is a company for long-term investment, so our plan [for this contract] is not just transfer of technology; we want to be part of it and make investment in this need that Iran has.”

“So, we are not here just to talk about the 600 kilometers, but we are here for what Iran needs and to conduct research on it”, he added.

He also said: “We are a global company and we are in Iran as there is big potential not only in this field but in a lot of things and you have big resources.”

“In this moment, we are today attending long discussions with vey professionals on one that I think is the biggest tender we have had in this industry for a lot of years and is very professionally  managed”, the Spanish director concluded. 

TUBACEX is the largest worldwide producer of seamless tubes in stainless steel and high-nickel alloys. It is a leading multinational group, with industrial facilities in Spain, Austria, the United States, Italy, India and Thailand, a global distribution network (TSS) and a worldwide sales presence.