Annual Report 2013

Premium connections and oilfield service

In 2013, shipments of OCTG with premium threaded connections developed by our Russian and American facilities amounted to 360 thous. tonnes, up 27% year-on-year

TMK is recognised among the world’s leading premium threaded connection producers and as the absolute leader in the Russian market. Pipe with premium threaded connections is used for oil and gas wells operating in adverse climactic and geological conditions, including offshore, deep-sea and Far North locations, horizontal and directional wells, and unconventional hydrocarbon (shale gas and oil sand) field development. The products offer high strength, tightness, excellent bending moment capacity and good resistance to other stresses and negative external factors.

In 2013, demand for premium connections continued to grow; shipments of OCTG with premium threaded connections developed by our Russian and American facilities amounted to 360 thous. tonnes, up 27% year-on-year.

In the reporting year, TMK united its two premium connections families, TMK Premium (Russia) and ULTRA (USA), under a single brand – TMK Ultra Premium (TMK UP).

TMK Ultra Premium (TMK UP) connections

By way of uniting premium connections families under a single brand, we will raise global awareness of our premium solutions and expand our oil and gas bidding opportunities worldwide.

In 2013, TMK’s premium connections were successfully qualified by ADCO (Abu Dhabi, UAE), one of the largest oil companies in the Middle East, and ONGC, India’s state oil and gas company.

One of our business priorities is to deliver premium OCTG complete with related services. Our oilfield services facilities along with technical and service support centres make virtually the whole range of threading connections, provide heat treatment, protective coating, pipe repairing and warehousing services. TMK experts are involved in the supplying, assembling and sinking of pipe columns in wells, and in the training of our customers’ technical personnel.

The Russian oilfield services division is headed by TMK Oilfield Services (Moscow) and includes the Orsky Machine Building Plant (Orsk, Orenburg Region), Truboplast (Yekaterinburg, Sverdlovsk Region), TMK NGS-Buzuluk (Orenburg Region), TMK NGS-Nizhnevartovsk (Khanty-Mansi Autonomous Area), with the latter two located in the centre of major oil and gas regions and providing well construction, repair and completion services to both large and mid-sized oil and gas companies and oilfield service providers.

In June 2013, TMK NGS-Nizhnevartovsk launched an inner coating line with an annual design capacity of 32 thous. tonnes of 73–168 mm pipe with protective corrosion-resistant coating. The event was attended by representatives of Lukoil, Rosneft, Tatneft, oilfield services companies and local oil producers. The installation of additional finishing capacities was a major step toward establishing partnerships in Russia’s largest oil production region.

In spring 2013, our North American subsidiaries expanded their capacities for premium connection pipe production and service: TMK IPSCO opened a new facility in Edmonton (Alberta, Canada), while OFS International (USA) acquired pipe service and accessory manufacturing assets located in Houston (Texas, USA) with annual production capacity of over 700 thous. joints and around 250 thous. couplings. In addition, the facilities provide pipe inspection services and manufacture down-hole tools and accessories for a wide range of oil and gas applications.

In 2013, Threading and Mechanical Key Premium LLC, TMK’s service and support centre in Abu Dhabi (UAE), was opened. It focuses on pipe and down-hole equipment repair and makes threaded connections on pipe strings for oil and gas companies operating in the Arabian Gulf region. The centre was certified by ADCO to provide oilfield services.