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TMK to Purchase TNK-ВР Service Assets

OAO “TMK” (TMK), one of the world’s largest oil and gas pipe producers and the market leader of the Russian pipe industry, today announces that it will acquire service assets from Russian oil and gas giant TNK–ВР. This acquisition is part of TMK’s strategy to develop oil and gas services and provide customers with additional benefits. This deal should be completed before the end of 2007.

TMK won the tenders conducted by TNK-ВР in August/September of this year and will acquire the OOO “Central Pipe Base”, the ZAO “Pipe Repair Department” and the building complex under construction in the vicinity of Nyagan.

These service companies specialise in the repair of tubing pipes, piston rods and pipe coatings, the manufacturing of pipe column sections and other downhole equipment. The companies also provide transportation services for tubular goods to oil field sites located in the Urals-Volga and Western-Siberian oil and gas regions.

Once this transaction is completed, TMK plans to develop the companies by expanding their service offerings and completing the construction of the Nyagan building complex. The modernisation of the service assets will increase their cumulative repair and finishing capacity to about 1 million seamless pipes per year.

“TMK is the world\'s second largest manufacturer of pipes for the oil and gas sector and it not only looks for additional profits from manufacturing and sales of tubular goods but also from the expansion of services offered to oil and gas companies. This purchase from TNK-BP will allow us to enter the untapped market of services, logistics and supply management in oil and gas regions », said CEO, Konstantin Semerikov.