Shell and Interpipe announce details of cooperation

Shell and Interpipe announce the details of cooperation. In 2012 Shell and Interpipe signed a Memorandum of Understanding (MOU) that outlined the steps required to bring Interpipe’s pipe products in line with Shell’s  global standards.

Since then the companies have successfully come through the crucial steps of the Memorandum. As a result Shell has approved Interpipe mills and certain product lines.

Robin Naughton, Well Engineering Team Lead, Shell: «Shell has approved and is satisfied with certain Interpipe products and continues to work with Interpipe on other aspects so that a significant and relevant product range is approved for Shell both in Ukraine and Internationally. Once relevant product lines are approved Interpipe will be able to bid for supply tenders for Shell.”

Denis Morozov, Director for Strategic Development , Interpipe: “The cooperation with Shell gives us a challenge to meet the highest quality standards in the industry. And I’m delighted that Interpipe has successfully passed Shell qualification audit. At the moment we have approved certain product lines with Shell and working on development of new pipe products with premium connections to meet company’s requirements to operate in tough geological conditions”.

As of today the companies announce the progress status on the crucial steps of Memorandum:

§ Shell has approved the steel manufacturing plant of Interpipe Steel for production of steel billets for use in rolling of casing and tubing

§ Shell has audited Interpipe NTRP and Interpipe Nikotube pipe rolling mills and confirmed that plants’ technological processes and quality management system comply with international standards. Qualification orders of casing and tubing have been transported to the US for inspection and verification of meeting Shell standards. Initial results are under review.

§ Interpipe NMPP mill has been approved by Shell for manufacturing of Line Pipe for a limited product range.

§ Shell has approved Interpipe to thread API specification connections, and is working with Interpipe on new premium connections. Premium connections are required for high pressure fracturing of gas wells to ensure well integrity and thus safe operations.

REFERENCE

Shell

Shell is a global group of energy and petrochemicals companies. With around 90,000 employees in more than 80 countries and territories, Shell helps to meet the world's growing demand for energy in economically, environmentally and socially responsible ways.

Shell has been operating in Ukraine since 1992 and is currently involved in exploration and production of hydrocarbons, natural gas marketing, lubricants and fuel retail. Shell employs over 2000 people in Ukraine.

Today Shell is involved in three separate exploration projects in Ukraine. Firsly, the Joint Activity Agreement with PJSC “Ukrgasvydobuvannia” provides for hydrocarbon exploration and production in Kharkiv oblast. Drilling of the first well within this project commenced in October 2012. Secondly, on January 24, 2013 “Shell Exploration and Production Investments (IV) B.V.”, LLC “Nadra Yuzivska” ??and the Government of Ukraine signed a PSA for the exploration, development and production of hydrocarbons in the Yuzivska area. The agreement involves staged exploration, development and production of hydrocarbons. During the first stage of the development after a comprehensive environmental, geological, social and economic assessment of the territory, Shell plans to acquire seismic and drill up to 15 exploration wells within 5 years. Shell does not conduct any industrial activities on Yuzivska area at the present time. Finally, in August 2012, a group of investors led by ExxonMobil and including Shell were selected as winners of the PSA tender for the Skifska offshore block in the Black Sea. Currently, negotiations are ongoing to sign the Production Sharing Agreement and Joint Operating Agreement.

Interpipe

Interpipe is a vertically integrated steel pipe and railway wheel company. It is among the ten largest producers of pipe products and the third largest producer of railway wheels in the world. The Company’s products are supplied to 80 countries through a chain of commercial offices located in Ukraine, Russia, Kazakhstan, Europe, the USA and the Middle East. In 2012, the Company’s mills produced about 1.2 mln tons of pipe and wheel products.

Interpipe Steel  is the first metallurgical plant, built in Ukraine from scratch for almost half a century. Its leading technology, labor conditions, and environmental protection standards, ensure that it represents a new phase in the industry. Investments in the mill amount to US$700 million.