Saudi oil giant Aramco has awarded contracts worth SR 604 million ($161 million) to two major local firms – Saudi Steel Pipe Company (SSP) and Arabian Pipes Company – for supply of steel pipes for its projects in the kingdom.
SSP is one of the leading steel pipe manufacturers in the region (galvanized and non-galvanized steel pipes and square and rectangular pipes).
It has a leading market share in Saudi Arabia and has over 28 years of operating experience in the steel pipe industry.
As per the contract worth SR 301.9 million ($80.4 million) awarded to SSP, it will supply oil and gas tubing to Aramco within a period of 12 months.
The financial impact of this order is expected to materialize in the first and second quarter results of 2024, said the key pipe manufacturer in its filing to Saudi bourse Tadawul.
This is the fourth contract win from Aramco for SSP this year thus taking its total tally to SR 524.7 million ($140.3 million).
On the Arabian Pipes Company order, Aramco said a contract worth SR 302 million has been awarded to the company to supply steel pipes for its key projects in the kingdom.
Arabian Pipes is a leading manufacturer of welded steel pipes for oil and gas sector as well as for structural and commercial utilization with sizes range from 6 to 48 inch.
It owns and operates two factories in the kingdom that has a total average capacity to 460,000 tonnes per year.
Aramco said the entire supply work will be completed by Arabian Pipes within 11 months.
