Strategy

ChelPipe’s strategy: A complete pipe, tube and OFS solutions provider in Russian and CIS oil & gas markets and a vertically integrated, quality & cost leader.

Overview

ChelPipe produces welded and seamless steel pipe products for use in the oil and gas industry and a variety of other industries at two main production facilities in the Ural region of Russia. The first, the Chelyabinsk Tube Rolling Plant is located in Chelyabinsk. The second, the Pervouralsky Novotrubny Plant is located in Pervouralsk (near Yekaterinburg). The majority of ChelPipe’s sales of steel pipe products are in Russia.

In line with its strategy of expanding the scope of its operations beyond its core steel pipe business with the aim to become a leading supplier of integrated solutions for oil and gas distribution and production in Russia, in 2008 ChelPipe acquired several oilfield services businesses which produce oil well extraction equipment and provide a number of other products and services for various stages of an oilfield’s development, and during the second half of 2010 ChelPipe acquired several trunk pipeline systems businesses that produce customised components for pipeline construction.

Products

Steel Pipe Products

ChelPipe produces steel pipe products in more than 25,000 different sizes and profiles from over 200 grades of carbon, alloy and stainless steel and covered with corrosion‑resistant coatings.

ChelPipe’s welded pipe products are LDP and welded industrial pipe and its seamless pipe products are OCTG, line pipe for use in oil and gas wells and seamless industrial pipe

Trunk Pipeline Systems

ChelPipe’s trunk pipeline systems business produces customised components for the construction of LDP pipelines, which consists of bends, pipeline hubs and valves. In addition, the business produces and short‑radius elbows and valves for various industrial applications.

Oilfield Services

ChelPipe manufactures, sells and rents oil well extraction equipment such as electric submersible pump (“ESP”) systems, provides installation and maintenance services in respect of ESP systems and provides additional products and services for various stages of an oilfield’s development. As of 30 June 2010 ChelPipe serviced 5,741 oil wells in Russia.