TMKS.L Regulatory News (TMKS)

4 Mar 2008 12:37

OAO TMK04 March 2008 March 4, 2008 PRESS RELEASE TMK Launches Oilfield Services Division OAO TMK (TMK), one of the world's top three oil and gas pipe producers, todayannounces the launch of TMK Oilfield Services. This new independently managedTMK division is comprised of OAO "Orsky Machine Building Plant", the OOO"Truboplast" pipe coating company, ZAO "TMK Pipe Maintenance Department" and OOO"TMK Central Pipe Yard". TMK Oilfield Services will assume management of each of these companies beforethe end of the first quarter of 2008. The creation of TMK Oilfield Services is part of TMK's strategy to become aglobal supplier of high-performance products to the oil and gas industry. Inaddition to increasing production of seamless threaded and line pipe, TMK isalso developing its oilfield services division to support its customers'production activities. TMK is further integrating the oil and gas supply chainby producing tool joints and tubing couplings, improving pipe and sucker rodmaintenance and repair services, providing coating services, and assisting inthe handling and installation of pipe columns in the well. At first, TMK Oilfield Services will focus on establishing itself in the tubulargoods and oilfield services market. It will gradually increase its market shareby expanding its range of products and services while enhancing overall qualityand acquiring additional assets located directly in oil and gas regions. Thenewly created services division operates in the Urals-Volga and Western-Siberianoil and gas regions. TMK Oilfield Services is currently formulating its investment programme with thegoal of improving and expanding its service offerings. Plans are underway tocomplete a service facility in the city of Nyagan and modernise other serviceassets acquired from TNK-BP to increase their cumulative repair and finishingcapacity to about 1 million seamless pipes per year. In 2007, TMK's service subsidiaries showed significant growth. Orsk MachineBuilding Plant produced 201,700 welded tool joints, an increase of 19% comparedto 2006, and 282,400 tubing couplings, a 191% increase on 2006 results.Yekaterinburg based pipe coating company, Truboplast, increased shipments ofcoated pipes by 12% to 50,300 tonnes. TMK plans to double the volume of itsvalue-added services in 2008 with expected revenues of RUR 3.8 bn.(approximately USD 160 mln). "Our reputation as the leading supplier of tubular goods to the Russian and CISoil and gas industry allows us to enter into strategic partnerships with Russia's largest energy companies. Our joint R&D programmes and long-term contractswith oil and gas majors make it possible for us to develop products that meetspecific field requirements and provide our customers with advantageous deliveryterms and conditions. Our goal is to meet the current demand fuelled by theintensive growth of the industry, including supporting our customers' fieldequipment operations. Expanding into oil and gas services is a good way for usto diversify our activities and hedge against pricing volatility on commoditymarkets. It increases the share of added value in our revenue structure", saidKonstantin Semerikov, TMK CEO. OAO "TMK" (www.tmk-group.com) Founded in 2001, TMK (LSE: TMKS) is the largest pipe producer in Russia and oneof the three global market leaders. In 2007, TMK shipped over 3 million tonnes of pipes. TMK supplies to companiesin more than 60 countries. TMK production facilities are located in Russia and Romania: • Volzhsky Pipe Plant; • Seversky Tube Works; • Taganrog Metallurgical Works; • Sinarsky Pipe Plant; • SC TMK-Resita SA; • SC TMK-ARTROM SA; • TMK Oilfield Services: • Orsky Machine Building Plant; • Truboplast pipe coating company; • TMK Central Pipe Yard; • TMK Pipe Maintenance Department. For further information please contact: TMK PR Department: Sergey IlinTel: +7 495 775 7600 ext. 2149 Email: PR@tmk-group.com TMK IR DepartmentAlexei RatnikovTel: +7 495 775 7600 ext. 2078Email: IR@tmk-group.com www.tmk-group.com This information is provided by RNS The company news service from the London Stock Exchange