OMK Enters the Middle East Market
OREANDA-NEWS. June 21, 2007. United Metallurgical Company (OMK) secured its first order for large-diameter pipes (LDP) from Petroleum Development of Oman (PDO), Sultanate of Oman, reported the press-centre of OMK.
Under the PDO-Marmul Polymer Flooding project, OMK will deliver 1,500 tonnes of 914-mm LDP to the Omani company. The Russian company became a PDO certified supplier of pipes for main pipelines in May.
OMK President Vladimir Markin emphasized the importance of OMK's first delivery of pipes to the Middle East market: "We are interested in the markets of Middle East countries, and in the near future the Company plans to actively promote its oil and gas pipes in this region, the world's leader in discovered and proved reserves of hydrocarbons."
Petroleum Development of Oman is a subsidiary of Shell. PDO accounts for more than 90% of the Sultanate of Oman's crude oil production and nearly 100% of the country's natural gas supply.
United Metallurgical Company (OMK) is one of Russia's largest producers of pipes, railroad wheels, and other metal products for energy, transport, and industrial companies. OMK comprises six largest enterprises in the metallurgical sector. The OMK Pipe-Rolling Division comprises Vyksa Steel Works (Nizhni Novgorod Region), Almetyevsk Pipe Plant (Republic of Tatarstan), and Trubodetal (Chelyabinsk Region); the OMK Steel Works Division comprises Chusovoy Metallurgical Works and Gubakha Coke (Perm Territory), and Shchelkovo Steel Works (Moscow Region).
In 2006, OMK products accounted for up to 20% of pipes consumed in Russia, including 41% of large diameter pipes, 63% of railroad wheels, and more than 70% of automobile springs. In 2006, the OMK enterprises produced 1,65 million tonnes of pipes of various sizes, over 400 thousand tonnes of rolled products, and 805 thousand railroad wheels. In 2006, OMK's sales reached about $3 billion. The main consumers of OMK products include such leading Russian and foreign companies as Gazprom, Russian Railways, LUKOIL, Transneft, Surgutneftegas, Rosneft, TNK-BP, ExxonMobil, Royal Dutch/Shell, General Electric, and Samsung. OMK supplies its products to 20 countries.
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