Naftogaz to set up pipe JV with Interpipe

NJSC Naftogaz of Ukraine and the country's largest pipe group Interpipe will create a joint venture to produce pipes for oil and gas industry. This is stated in a decree of the Ukrainian Government.

"The object of joint activity is the creation and operation of production facilities, as well as carrying out services in the industrial manufacture of high-tech oil and gas, casing seamless pipes and couplings in the volume of up to 300,000 tons per year," the decree says.

Naftogaz will contribute money of not less than 75% of the joint venture cost, and will receive the same part of the production. Interpipe, for its part, will invest money, property rights, technology and equipment that are necessary for the production of pipes.

Interpipe Group runs three tube companies: Interpipe Nizhnedneprovsky Pipe Plant, Interpipe Niko-Tube and Interpipe Novomoskovsk Pipe Works.

In 2010, the companies produced 853,200 tons of pipes, which accounted for 44% of the total output of pipes in Ukraine.

Ukrinform