Hartlepool steel mill lands massive Saudi Arabia contract in milestone deal
A milestone contract – to make nearly ten miles of steel pipe for a contract in Saudi Arabia – has been won by a Hartlepool mill.
Liberty Steel Hartlepool, which is part of Sanjeev Gupta’s GFG Alliance, has secured the deal which officials have described as a ‘breakthrough’.
It will be making heavy-duty steel pipe for an offshore Saudi Arabian oil and gas development which is worth billions of dollars.
The order to supply SAWL Linepipe for an expansion of the Saudi Aramco Marjan field is the first major contract the Hartlepool mills have won from the Middle Eastern Kingdom since being acquired by Liberty almost two years ago.
Since then the plant, which employs 200 people, has fulfilled major orders from North Sea oil and gas producers and a range of American customers.
But the latest contract represents a breakthrough in efforts to establish a presence in the world’s largest oil and gas producing region.
Saudi Aramco is the world’s biggest oil and gas company by revenue and Liberty is hopeful the prestigious Marjan contract will lead to further opportunities in Saudi Arabia and the wider Gulf region.
Martyn Curnow, Commercial Director, Liberty Steel Hartlepool, said: “It is extremely pleasing to re-establish the Hartlepool mill as a supplier in the region following a significant period of absence. This success is testament to the hard work and commitment shown by our employees in all areas of the business.”
Saudi Aramco is planning to boost the Marjan and Berri fields’ production capacity by 550,000 barrels per day of crude oil and 2.5 billion standard cubic feet a day of gas.
Liberty in conjunction with Sumitomo Corporation Middle East FZE, will supply the Marjan project with more than 16 kilometres of Submerged Arc Welded Linepipe (SAWL) from its 42-inch UOE mill which is one of two mills it operates at Hartlepool.
It is expected to be ready to be delivered towards the end of this year.
Mr Curnow added: “The team, led by Steve Brooke in the UK and Saad Jakani in the United Arab Emirates, worked tirelessly with the client to ensure that the demanding specification was fully understood and delivered a robust
technical proposal which we are sure was a key consideration in the evaluation and acceptance of our offer.”
Masaki Nakagaki, General Manager of Tubular Products Unit, Sumitomo Corporation Middle East FZE said the recent success was “testimony of our efforts to contribute to growth of the oil and gas sector in the region with partners like Liberty Pipes Hartlepool.”
Sanjeev Gupta, executive chairman of the GFG Alliance, said: “We’re delighted to have secured this very important order. Given that we are operating in very tough market conditions, the award of this contract further underlines the quality of the work at Hartlepool and the team’s ability to meet the highest global standards.”