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Saudi Aramco awards tubing contract

Gas

Tenaris and PCC Energy Group, a business of Precision Castparts Corp. have been awarded a big contract to supply a Corrosion Resistant Alloy (CRA) tubing for Saudi Aramcos Arabiyah & Hasbah offshore gas development project.

Together, the companies will supply 57,400 feet of 9-5/8 inches OD CRA casing used as tubing (Alloy 28 and G3), which will ship out over the course of several months.

The plain end pipes will be manufactured by Precision Castparts' Energy Group at its forging plant in Houston, Texas.

Subsequently, the material will be threaded with TenarisHydril BlueTM and Wedge 513TM premium connections at Tenaris's threading facility in the Kingdom of Saudi Arabia.

This order results from a recently signed worldwide cooperation agreement between Tenaris and PCC Energy Group to combine their well-established strengths and global reach for the supply of large-diameter CRA pipes for the most demanding OCTG applications in the industry.

Arabiyah and Hasbah will feature seven and six single-well platforms, respectively. Each well is expected to deliver on average 200 MMcf/d, all sent to one tie-in platform per field. The system should delivering up to 1.2 bcf/d of gas from Arabiyah and 1.3 bcf/d from Hasbah to the new Wasit Gas Plant, 8 km from KGP, and is part of Saudi Aramco’s strategy to meet in-Kingdom energy demand beyond 2014.

Drilling on Arabiyah was due to start during 1Q 2011 and in current quarter on Hasbah.

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