One of the world’s top three pipe manufacturers, Pipe Metallurgical Company has announced establishment of LLC “TMK Neftegazservis”. The newly established legal entity will manage the operation of oilfield services subsidiaries owned by OJSC “TMK”: OJSC “Orsky Machinery Plant”, LLC “Truboplast”, CJSC “Pipe Repair Company” and LLC “Central Pipe Base”. The oilfield services division will become an independent business of TMK.  

The authority of the sole executive body of each service subsidiary will be transferred to the management company LLC “TMK Neftegazservis” before the end of 1Q 2008.  

The establishment of the division is in line with the strategic view of TMK as a global supplier of high tech products for the oil and gas industry. Expanding seamless pipe production, the company also makes much effort to develop  its service division – to manufacture welded tool joints and tubing couplings, improve the pipe and sucker rod repair and maintenance services, provide insulation coating, packaging, perform assembling and running of pipe strings into the well.

The primary goal of the TMK service division is to secure foothold in the oilfield procurement services market,  gradually increase its presence though extension of service range, improvement of services quality and acquisition of new assets in oil producing regions.  Today, the division’s subsidiaries operate in Volga-Ural region and West Siberia where oil and gas are produced.

TMK-Neftegazservis is currently developing an investment program to improve the quality and expand the range of services.  The plan is to complete construction of a service center in Nyagan that was acquired from TNK-BP, and to increase capacity for repair of seamless pipes that may total 1 million pipes annually.


TMK BOARD OF DIRECTORS

Dmitry Pumpyansky  - Chairman  

Pyotr Golitsin – Non-executive director of the board of directors
Managing director of CJSC BASF,
Chief representative of BASF AG in RF

Andrey Kaplunov – Vice-President of CJSC “Sinara Group”

Adrian Cobb – Advisor to president of CJSC “Sinara Group”

Joseph Maru – Non-executive director of the board of directors
Country manager of Thyssen Krupp AG in RF

Sergey Panin – Vice-President of CJSC “Sinara Group”

Jeffrey Townsend  - Non-executive director of the board of directors  

Igor Khmelevsky – Vice-President of CJSC “Sinara Group”

Alexander Shiryaev – General director of CJSC “Sinara Group”

Mukhadin Eskindarov – Non-executive director of the board of directors
Rector of Finance Academy of the RF Government