Russian-manufactured Premium Connections

TMK’s Russian plants produce an entire range of gas-tight premium connections. TMK premium connections for casing and tubing differ from standard types of threads by their high level of reliability, increased level of integrity and a wide range of applications in various operating conditions. In 2010, the Company continued to strengthen its market position in the premium connections market in Russia and the CIS. Shipments of these products manufactured by TMK’s Russian plants and TMK-Kaztrubprom increased by 23% in comparison with 2009.

TMK has continued to work closely with Russian customers, and several of its main partners in 2010 were Gazprom and Novatek. Joint projects have focused primarily on substituting imports with Russian-manufactured products. Collaboration in 2010 led, among other things, to the supply of Sinarsky-manufactured tubing threaded with TMK FMT Premium Connections to Gazprom’s Bovanenkovo field, as well as supplies of pipes with TMK PF Premium Connections to the two companies’ northern projects. Previously, these kinds of pipes were purchased primarily from foreign manufacturers.

With respect to offshore drilling, the Company has carried out several successful projects. It has run pipes with TMK FMT and TMK GF Premium Connections at the Lukoil’s Korchagin field in the Caspian Sea in 2010, and in early 2011, it also ran pipes with TMK PF Premium Connections at the offshore wells on Zarubezhneft’s platform in Vietnam. In 2010, TMK was qualified by Shtokman Development, which will allow future supplies to one of the most important Russian projects in the gas industry and to the first project implemented on the Arctic shelf.

Currently, the Company pays special attention not only to the manufacture and supply of premium tubular products, but also to providing a comprehensive set of services that includes the supply of components for the columns — pipe, adapters and landing joints — as well as full after-sales service, including training, engineering maintenance and supervising. In 2010, production services implemented by TMK and associated with premium products have found wide application in both domestic and overseas markets.

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