Iran to Strike 1st Energy Deal with Int’l Partner since Nuclear Accord

TEHRAN, May 23 (NIOCEXP) — The National Iranian Oil Company (NIOC) is to sign Iran’s first oil contract with an international consortium in the post-sanctions setting on Wednesday.

NIOC is to sign the deal with a consortium comprising Spain’s Tubacex S.A. and Foolad Isfahan Company from Iran for production of corrosion resistant alloy (CRA) pipes.

The document is being signed less than a week after President Hassan Rouhani reelection in Iran’s presidential election on May 19.

Based on the deal, the technical savvy for manufacturing alloy steel pipes, particularly CRA pipes, will be completely transferred to Iran and by fulfillment of the contract, Iran will be known as one of the main manufacturers of this strategic commodity in the world.

Churning out 600 kilometers of the item ordered by Pars Oil and Gas Company by Foolad Isfahan Company is stipulated by the contract.

CRA pipes are currently supplied by a limited number of companies.

Tubacex S.A. and Japan’s JFE have committed by this contract to invest in fabrication of CRA pipes and transfer the technical know-how to Isfahan Steel Co. in a period of three years.

The contract will entail production of high chromium and nickel bars, production of seamless pipes and threading of the pipes which require state-of-the-art technologies.

The technology is so advanced that even China cannot produce the pipes. After fulfillment of the deal, Iran will be fully able to produce the strategic item.

In 1999, Iran made a similar move to domestically manufacture gas turbines for consumption in its gas industry. Dubbed as the biggest step in self-sufficiency in the history of oil industry in Iran, the initiative protected the country against many of the issues the sanctions could have caused against it.

Resource: Shana