Sumitomo Metals and Sumitomo Corp Won Long Contract from Statoil

Sumitomo Metal Industries and Sumitomo Corporation announced on Monday they concluded a long-term contract with Statoil, a Norwegian oil company, to supply high grade oil well tubular for 5 years to fiscal 2012 ending March 2013. Sumitomo group has supplied high-end seamless steel pipes, including annealed pipes and high grade screw pipes, and super-high-end seamless steel pipes such as 13% chrome seamless pipes for Statoil. In this new contract, high alloy oil well tubular was additionally ordered at 500-1,000 tonnes per year. Sumitomo Group’s high grade oil well tubular supply will total 43,000 tonnes per year for Statoil.Statoil is the biggest oil company in Scandinavia which develops and produces oil and natural gas mainly in North Sea. High grade screw pipe “VAM” made by Sumitomo Metals is used for the most of Statoil’s oil well tubular.Sumitomo Metals and Sumitomo Corp have supplied high grade oil well tubular to Statoil since late 1980s. The sales volume has totaled about 1.2 million tonnes. Their last long-term contract will end in March 2008. Statoil carried out a tender at the end of 2006 for a next contract during fiscal 2008-2012 and Sumitomo Group won order continuation.Along the new contract, Sumitomo Group will deliver high-end steel pipes, including annealed seamless steel pipes and screwed VAMs, at 32,000 tonnes per year, 13% chrome series seamless steel pipes at 8,000-10,000 tonnes per year and high alloy steel pipe including 22% chrome at 500-1,000 tonnes per year.