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BUCHAREST (Romania), October 10 (SeeNews) – Russian steel pipes manufacturer ChelPipe Group said on Tuesday it will supply large diameter pipes (LDP) to Romania's oil and gas group OMV Petrom [BSE:SNP].
The order includes 850 tons of pipes with a wall thickness of 14.2 mm and 1,620 tons of pipes with a wall thickness of 11 mm, ChelPipe said in a press release.
The value of the deal was not disclosed.
The LDPs will be manufactured at the Vysota 239 LDP rolling mill at the Chelyabinsk Pipe Plant, a ChelPipe subsidiary.
Pipes will be used to repair an existing OMV gas pipeline and to build a new one in Romania. The job involves a challenging lead time for production and delivery, the company added.
Under the terms of the contract concluded in September, ChelPipe Group will supply the first batch of pipes in October. To ensure prompt LDP delivery, the company said it has developed a multimodal logistics system involving transportation by rail, sea, and road.
"This victory in the competitive struggle with European manufacturers once again emphasizes the high quality of our product and the demand for our product, both on the internal and external markets," ChelPipe Group sales director Denis Prikhodko said.
Pipes manufactured at the Vysota 239 have been used in the construction of large sports facilities: The Olympic Speed-skating Center in Sochi and the stadiums that will host the 2018 FIFA World Cup.
Founded in 1942 in Chelyabinsk, ChelPipe makes welded and seamless steel tubes and pipes mainly for the Russian gas and oil industry, but also for clients om Europe, Middle East and USA.
Austria's OMV Group is the largest oil and gas company in Central Europe.
Romania sold Petrom to OMV in late 2004. OMV holds a stake of 51.01% in OMV Petrom, the Romanian state, via the energy ministry owns 20.64%, Fondul Proprietatea owns 12.56%, and 15.78% is in free float on the Bucharest Stock Exchange and the London Stock Exchange.
OMV Petrom's shares were trading 0.17% lower at 0.2870 lei at 1432 CET on the Bucharest Stock Exchange.