Zamil Group, one of Saudi Arabia's most prominent industrial organizations, has signed a definitive contract with Brandt Engineered Products Limited (Canada) for the development of a new seamless pipes processing facility in Dammam 2nd industrial city.
The plant will process seamless pipes, commonly known as oil country tubular goods, in a size range from 4-1/2" through 13-3/8" in diameter for use in oil and gas wells. The plant will have an initial production capacity of 170,000 tons of API and premium joint casing per year based on state-of-the-art production equipment for the heat treatment, threading and testing of pipes for critical well applications used by Aramco and other major oil and gas producing companies in the region.
The detailed design of the project, based on an earlier agreement with Brandt, is in place and construction shall start in early 2008. Brandt's scope includes design, engineering, procurement, installation supervision and commissioning. Zamil Group has entered into a number of agreements with various strategic partners for the supply of technical and operating assistance. This includes an agreement with Vetco Saudi Arabia Limited (an affiliate of Tuboscope, a division of National Oilwell Varco, L.P.) to provide and operate the plant's non-destructive testing facilities utilizing Tuboscope's Amalog®, Sonoscope®, and Truscope® inspection systems which will be the most advanced technology available in the region. Brandt Engineered Products Limited (Canada) is not affiliated with the National Oilwell Varco L.P. The project has been developed in collaboration with Special Industries, Inc. headquartered in Houston, Texas, USA.
The project will initially employ about 250 and has the potential to create additional jobs in the Kingdom for support activities. The investment is anticipated to reach SR650 million.
"With this pioneering project, we aim to provide Aramco with products of the highest quality using world class equipment and technologies. The project will allow us to transfer the know-how and master these vital technologies used in oil & gas hence adding to the Kingdom's core economic strength and to the national welfare", said Dr Abdulrahman Al Zamil, Chairman of Zamil Group.
"The plant is forecast to commence operations in 2009. We aim to reach full capacity over a short period of time. We plan to add new lines in the near future to cover a broader size range", said Dr. Fadi Jardali, Zamil Group's Project Director.
-Ends-
© Press Release 2007
