Majority state-owned Petroleum Development Oman (PDO) has signed a $200mn pipe supply contract with an Omani factory as part of its in-country value (ICV) strategy to retain more of the oil and gas industry’s wealth in the Sultanate.
The four-year deal entails that the Gulf International Pipe Industry (TMK-GIPI) mill based in the Sohar Industrial Estate will manufacture a variety of pipelines sized 6-24 inches in diameter for both PDO and other operators.
TMK-GIPI is the first manufacturer of high-pressure steel line pipes and casing pipes in Oman and its production plant is also the first in the region to make high pressure 24-inch electric resistance welded (ERW) steel pipes.
As a result of the contract award, the company will expand its current production range and introduce a new manufacturing line for small pipeline categories to cater for high demand of such sizes from PDO and the rest of the oil and gas industry.
