Saudi Steel Pipe can fulfill Aramco contract, says CEO

Saudi Steel Pipe Co.’s (SSP) production capacity is sufficient to meet the needs of state-run Saudi Arabian Oil Co. (Saudi Aramco) under the newly-awarded contract, SSP chief executive Hisham Al-Hamili told CNBC Arabia on Wednesday.

The company’s fifth production line, which manufactures pipes with the diameter range required under the deal, has already come online, Al-Hamili said.

Earlier this week, Saudi Steel Pipe won a contract at a total value of over SAR 245 million to supply Saudi Aramco with steel casing pipes.

The pipe manufacturer can fulfill more such contracts, Al-Hamili said, adding that he expects new deals from the Saudi oil major in line with its plans to focus on local procurement.

When asked about energy price hikes, the chief executive said they will not have a significant impact on the company, as costs are mostly related to raw materials.