RIYADH: Energy behemoth Saudi Arabian Oil Co. will procure oil and gas tubing worth SR301.9 million ($80.4 million) from Saudi Steel Pipe Co. over the next 12 months, according to a bourse filing on Tuesday.
The financial impact of this order is expected to materialize in the first and second quarter results of 2024, the pipe manufacturing company said in the statement.
Saudi Steel Pipe Co. has signed four contracts with Saudi Aramco so far this year. The value of its previous contracts amounted to about SR222.7 million.
Two of these were signed in May, with one worth SR50.2 million and the other valued at SR96.8 million.
In September 2022 Aramco awarded a contract to the firm worth SR149.8 million for the supply of oil and gas steel pipes.
That came after a 10-month contract was signed in May 2022 which was valued at SR58 million and included oil and gas extraction.
Saudi Steel Pipe Co. is not the only firm in the Kingdom that has benefitted from Aramco’s infrastructure developments, as East Pipes Integrated Co. and Group Five Pipe Saudi Co. have also recently signed deals with the energy giant.
In May, East Pipes Integrated Co. was given a contract for SR1.8 billion to produce and supply steel pipes to the oil business.
That deal is set to begin delivering revenues for the firm in the third and fourth quarters of the current fiscal year, as well as the first three months of the next financial period.
Group Five Pipe Saudi Co. secured a contract worth SR145 million in June from Aramco to supply welded spiral steel pipes for water usage in the oil giant’s facilities of Jaladi and Abqaiq.
