chelpipe group

Chelpipe GROUP

Company profile

Group History

1942-2002 2002-2004 2004-2007 2007-2010

Foundation of Chelyabinsk Tube Roling plant based on evacuated Mariupol Pipe Plant equipment

Commenced production of welded industrial pipe

Chelyabinsk Tube Roling plant became the world largest pipe plant with output of 3.3-3.5 mln tonnes of pipes per annum

Commenced production of large diameter pipe

Extensive capex programme aimed at significant capacity increase

Production increase due to rapid recovery of oil & gas sector in Russia

ChTPZ Group was established

Implementation of modern management technologies

Attraction of significant investments

Commencement of a 5-year modernization programme

ChTPZ Group established Service Division as part of the strategy aimed at meeting growing demand from energy companies in integrated pipeline and related product packages

MZMZ – pipe bends and other pipeline components producer was acquired

Commenced production of high-quality ceramic flux used in welded LDP

Acquired 57% stake in Pervouralsk New Pipe Plant

ChTPZ Group became the second largest pipe producer in Russia

SOT – producer of bends with diameter up to 1,420 mm and wall thickness up to 100 mm was commissioned

Commenced Phase I of mini-mill construction project (USD $42 mln)

Launched construction of finishing centre (USD $10 mln)

MSA – industrial valves producer was acquired

Group established Rimera for the purpose of consolidation of the newly acquired OFS assets

Alnas - Russian largest ESP(1) producer was acquired

Izhneftemash – oilfield equipment manufacturer has joined Rimera

Rimera acquired control over key players in well logging market in Khanty-Mansiysk Autonomous District and Tomsk Region: Yuganskneftegazgeofizika and Tomskneftegazgeofizika

Rimera established Commercial Dept which consolidated sales & logistic functions of all enterprises

1942

1949

1956-1970

1963

1970-1990

1999

2002 2004

2006

2007

2003

2008

(1) Electric submersible pumps

2009

3

CHTPZ GROUP – INTEGRATED SOLUTIONS PROVIDER FOR OIL & GAS INDUSTRY

Large diameter pipes Pipeline service solutions Pipeline parts (bends/elbows, fittings,

valves)

Well logging Reservoir appraisal

OCTG pipes Well construction OCTG service

Oilfield equipment production and maintenance

Chelpipe Group accounted for 19,5 % of total Russian pipe output, producing 1,509 th. tonnes of pipes The Group unites “Chelyabinsk Tube Rolling Plant” (ChTPZ) and “Pervouralsk New Pipe Plant” (PNTZ). All sales and marketing operations are conducted by Uraltrubostal Trading House The strategy of ChTPZ Group is aimed at supply of comprehensive integrated solutions to Russian and international companies in the fuel and energy sector ChTPZ Group, through its subsidiary Rimera, offers services in exploration and oilfield development complete set of components for the construction of trunk and field pipelines delivery

GROUP HIGHLIGHTS

Pipe divisionPipe division

CHTPZ

PNTZ

Trading House «Uraltrubostal»

Chelpipe Group Chelpipe Group

Rimera(oilfield service

division)

Rimera(oilfield service

division)ChTPZ MetaChTPZ Meta

MZMZ

SOT

MSA

ALNAS

Izhneftemash

Rimera - service

Trading House «Rimera»

Tomskneftegaz-geophysica

Yuganskneftegaz-geophysica

Taimyrnefteraz-vedka

SAW linepipes Seamless linepipes OCTG Mechanical tubing Boiler tubes Stainless tubing Construction tubes

Bends/ ElbowsValvesFittings

Manufacturing and maintenance: electric submersible pumps (ESP), pumping, cementing, mixing units, sucker rod pumps

Tubing pipes rehabilitation

Exploration drilling Well logging and perforationGeotechnical studiesFormation testing

Ferrous scrap collection system and pipe-billet production

Trunk pipeline equipment

Oil & gas equipment

Formation evaluation

Trading House «Chtpz-kts»

Products and services for oil & gas

4

PRODUCTION RANGE OF PIPE DIVISION (1/2)

Welded Steel Pipes & Tubes

Longitudinally Welded Large O.D. Pipes (SAW)

Butt-WeldedTubes

ERW and HFIPipes & Tubes

• Range: 21 – 89 mm O.D.• Threaded & coupled or PE• Black or galvanized• Application: water and gas conveyance

• Range: 508 – 1220 mm O.D.• Black or with 3PE or FBE coating• Application: oil and gas trunk pipelines

General Purpose

Special Purpose

Round, square, rectangular,oval, flat-oval, variable cross-section

Application: compression refrige-rators, automotive exhaust systems,shock-absorbers, cardan axles, oil radiators

Range: 17 – 114 mm O.D.


ChTPZ Group ChTPZ Group

Oilfield service division - RimeraOilfield service

division - Rimera ChTPZ MetaChTPZ Meta

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Seamless Steel Pipes & Tubes

Hot-FormedPipes & Tubes

Cold-FormedPipes & Tubes

Range: 32 – 530 mm O.D. Range: 4 – 325 mm O.D.

Cold-DrawnPipes & Tubes

Cold-RolledPipes & Tubes

Range: 4 – 180 mm O.D. Range: 57 – 325 mm O.D.

Application and Products:•Line pipes•OCTG – casing & tubing•Heavy-wall for mechanical engineering•For boilers and pressure vessels•Cold-resistant•For aviation and shipbuilding•For petrochemical industry•Corrosion resistant (stainless steel)•General purpose

Application and Products:•Aviation and shipbuilding•Mechanical engineering•Petrochemical industry•For boilers and heat-exchangers •Military

•Automotive industry•For downhole oil and gas equipment•Cold- and corrosion resistant (SS)•Ultra low-wall pipes•Capillary and variable cross-section

PRODUCTION RANGE OF PIPE DIVISION (CONT’D) (2/2)

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NORMS, STANDARDS & QUALITY ASSURANCE AT PIPE DIVISION

Quality Control is a top priority and a key element in ensuring the consumer‘s loyalty to our products and trust in what we do

Multi-stage quality control system (inspection + testing + certification) guarantees the quality of our goods

Testing is performed at the Mill’s Quality control centers for:- chemical analysis- mechanical testing- steel macro- and microstructure control- raw material and pipe coating

Conformity of our goods to various domestic and international standards is ensured by regular certification and quality audits performed at the Mills

Norms & standards at pipe division:- seamless Pipes: Domestic Standards & Specs, API 5L, ASTM A53, A106, A333,

A335, A179, ASTM A213, A312, DIN 1629/2448, DIN 2391/2448, 2440/2441, DIN 17458/2462, 17175, EN 10210, 10297, 10216, 10219

- welded Pipes: Domestic Standards & Specs, API 5L, ASTM A53, DIN 2439, 2440, 2441, DIN 1626/2458, DIN 2393, 2394, 2395, EN 10240 A.1

Quality Assurance & Control at pipe division

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MSA a.s.

CHTPZ KTS

Procurement & resale of valves and fittings

SOT

MZMZMZMZ

SOTSOT MSAMSA

• Cooperation with foreign and domestic manufacturers to provide integrated pipeline solutions all over the world

• MSA is one of the European leaders in valves manufacturing• Located in Dolní Benešov, Czech Republic • Products:

Ball valves DN 50-1400, PN up to 25 mPa Gate valves DN 30-1400, PN up to 25 mPa Swing check valves DN 50-600, PN up to 25 mPa Globe valves DN 50-350, PN up to 10 mPa Nuclear power valves

• ČSN, GOST, API, ANSI, ASME, ISO, BS, DIN certificated

• Bend: Ǿ 200-1400 mm• Bent branch: Ǿ 50-1400 mm• Pipeline hub: Ǿ 200-1400 mm• Adapter ring: Ǿ 200-1400 mm

API, GOST certificated

Branches: Surgut, Chelyabinsk,

Magnitogorsk, Almaty (Kazakhstan)

Branches: Surgut, Chelyabinsk,

Magnitogorsk, Almaty (Kazakhstan)

Key clients and projects:

• Complex supply for ESPO pipeline («Transneft»)• Fittings&valves supply for Vankor field development

(«Rosneft»)• Middle-Center Asia -4, Atasu-Alashan’kou, Keniyak-Kumkol’

pipeline projects (Kazakhstan) • Sempra project, On zy-tech’s stock, bechtel project (USA)• Margham, Margham II (UAE)• Gasco project (Egypt), Sain-Rawl 32’’Loopline (Oman)



MZMZFitting manufacturers

• Short radius elbows: Ǿ 45-820 mm• Concentric & eccentric reducers: Ǿ 50-400• Elliptical plug: Ǿ 50-400 mm

GOST certificated

BUSINESS-UNIT «TRUNK PIPELINE EQUIPMENT» - COMPLETE SET OF COMPONENTS FOR CONSTRUCTION OF TRUNK AND FIELD PIPELINES







Oil & gas equipmentOil & gas

equipmentFormation evaluationFormation evaluation

CHTPZ KTSCHTPZ KTS

Manufacturing and supply of fittings

Complex supply of pipeline components

Manufacturing and supply of valves

8

PRODUCTS RANGE OF SOT

SOT – on of leading Russian producers of bent elbows with inductive heating

Competitive advantage of SOT’s products is defined by latest manufacturing equipment, where most noticeable is automatic geometry support during bending

Elbow diameters range from 219 to 1420 mm inclusively, firmness grade up to Kh100, wall thickness up to 100 mm, bent angle from 1 to 180 degrees with 1 degree step

SOT also produces assembled hubs – ready to use pipe constructions assembled in factory conditions

SOT is fitted with equipment for anti-corrosion coating from leading international companies - Turbotecnica, PRO TECH, Polin and can process components of any design and difficulty

For anti-corrosion SOT uses polyurethane materials from UP-1000/Frucs 1000A and Protegol UR-Coating 32-55. These polyurethane materials had been recognized as one of the best means for protecting metals from corrosion

SOT’s product range includes cold-bent elbows. Pipe-bending machines (TM&D, Italy) allow to bend cold pipes with diameter from 500 up to 1400 mm

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Short radius elbows

Concentric & eccentric reducers

Elliptical plug

Basic technical documents

SNiP 2.05.06-85SNiP 3.05.05-84SP 34-116-97BSN 51-3-85SN 527-80PB 03-585-03PB 10-573-03

OST 34.10.699-97OST 34.10.700-97OST 34.10.418-90OST 34.10.422-90

Technical documents for components production

TU 1468-001-01394395-95TU 1468-002-01394395-95TU 1468-004-01394395-97TU 1468-005-01394395-98TU 1468-008-01394395-04TU 1468-009-01394395-03TU 1469-009-01394863-07TU 1468-010-01394863-99TU 1468-010-593377520-03TU 1462-203-0147016-01TU 14-159-283-2001TU 1468-020-48124013-03

Products characteristics

Application: water, steam, hydrocarbons

Pressure: up to 32 MPa

Parts diameter: from 45 to 820 мм

Steel grades: 10, 15, 20, 20А, 20UCh, 20GFUA, 08KhMChA, 09GSF, 09G2S, 15GS, 17G1S, 14G2AF, 13KhFA, 15KhFA, 15KhMFA, 20KhFA, 30KhMA, 15KhSND, 15Kh5M, 15Kh5, 12Kh2MFSR, 08Kh18N10T, 10Kh17N13М2Т, etc.

Firmness grades: from К34 to К60

Exploitation temperature: from -60 up to +450 Сo

GOST 17375-2001GOST 17378-2001GOST 17380-2001

PRODUCTS RANGE OF MZMZ

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Ball valves

Gate valves

Swing check valves

Globe valves

Basic technical documents

Standards ČSN, GOST, API, ANSI, ASME, ISO, BS, DIN

Products characteristics

Water, gas, oil, sour service Temperature range from -60°C to

+ 400°C CLASS from 150 to 1500, NPS

from 2" to 56“

Crude oil products, non-corrosive liquids, water, saturated steam, air, oil

Temperature range from -46°C to + 650°C

CLASS from 150 to 1500, NPS from 2" to 56"

Water, steam, oil, crude oil and crude oil products, non-corrosive liquids


CLASS from 150 to 600, NPS from 2“ to 24“

Water, saturated steam, air, oil, crude oil products, non-corrosive liquids


CLASS from 150 to 600, NPS from 2" to 14"

PRODUCTS RANGE OF MSA

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QUALITY ASSURANCE & CONTROL AT TRUNK PIPELINE EQUIPMENT (OILFIELD SERVICE DIVISION)

Quality management systems are in place on all plants

ISO 9001:2000 international standards certification or it’s Russian equivalent GOST R ISO 9001-2001

Quality management system certification ST RK ISO 9001-2001 for Kazakhstan at MZMZ and SOT plants

License of Federal Bureau for Ecological, Technological and Nuclear Supervision

Rostechnadzor equipment license for oil processing, chemical and other highly explosive and toxic production processes

American petroleum institute (API) certificate that qualifies MSA for API Q1 standards

MSA has UO-12-101-1060 license from 04.03.05 for nuclear plant equipment production

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Oil&Gas equipmentOil&Gas equipment

Manufacturing

• «ALNAS»• «Izhneftemash»

Service

• «Rimera-service net»

Sales

Trading House «RIMERA»

JSC «ALNAS»The Almetyevsk Pump Manufacturing Plant holds leading role in Russian ESP-manufacturing market since 1978

Core product – electric submersible pumping units (ESP) for oil lift ALNAS products are supplied to leading Russian oil companies, as well as to international players in CIS, India, Oman, Iraq, Iran, Syria, etc.«ALNAS» quality system was certified for compliance to International Standard ISO 9001

JSC «Izhneftemash»

The Izhevsk Oilfield Machine Building Plant has been producing and delivering products for domestic and foreign oil companies since 1964

Products:• Sucker rod pump (SRP)• Pumping units• Cementing trucks• Mixing trucks• Pumps• Gear reducers• PCP drives• Automatic break out tongs• Fishing tools

«Rimera - Service» - service centers for pumping system (ESP and SRP)

Service centers are located in the largest oil-producing regions of Russia – Almetyevsk, Nizhnevartovsk, Surgut, Nyagan, Izhevsk, Usinsk, Nefteugansk, Buguruslan, PermProvided services:

• Short-time delivery of pumps and spare parts, ESP leasing

• Installation, running, commissioning and setting to operation mode

• ESP overhaul and maintenance• Technical consulting• Monitoring of ESP performance

and data analysis

BUSINESS UNIT «OIL & GAS EQUIPMENT » - SERVICE AND EQUIPMENT FROM DRILLING AND FIELD DEVELOPMENT TO OIL PRODUCTION









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• ALNAS, est. in 1978, is the largest ESP manufacturer in the world, with production capacity up to 12 000 sets in year

• ESPs – Electric Submersible Pumping System for oil recovery generally consists of:Submersible

centrifugal pumpGas separatorHydro protectorSubmersible electric

motorCable lineSurface electric

equipmentTelemetry systemsTools and

accessories

A-ESPs structure

Submersible electric motor

Submersible centrifugal pump

(A-ESP)

Gas separator Hydro protector

ALSU-A switchboard VSD of new generation

(ESP control and protection)

ALNAS ESP

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Alnas quality management system is certified in accordance with ISO 9001:2000. Currently Alnas is carrying out qualification procedures for ISO 9001:2008, which will be obtained in June 2009

Quality management system is fully documented and supported by necessary for ISO 9001:2008 procedures

Alnas implemented ecological management system in accordance with GOST R ISO 14001-2007. Qualification procedures for ISO 14001-2007 are under way and will be complete in 2009

License of Federal Bureau for Ecological, Technological and Nuclear Supervision confirms industrial products safety

QUALITY ASSURANCE & CONTROL AT ALNAS (OIL & GAS EQUIPMENT)

15

The oilfield pump units are intended for injection of working fluid during well cementing, hydro fracturing, hydraulic jet perforating, sand plug flushing, drilling, sidetracking and other flushing operations in oil and gas fields.

The mixing units are intended for transportation of dry concrete material (cement, sand, etc.), preparation of grouting mortar blends and other sandy and liquid blends for cementing oil and gas wells.

Pumps are intended for use as part of oil and gas pump units for well cementing and other oil field operations, for pressure maintenance systems and other.

Pumping units are individual mechanical drives for sucker rod pumps. Izhneftemash produces pumps for mounting on low and high foundations, single arm and chain pumping units.

Gear reducers are main composing parts of pumping units. PCP drives are intended as individual mechanical drive for progressive cavity pumps. They are efficient for exploitation of high viscosity oil and oil with high gas compound.

Izhneftemash produces more than 800 pump sizes and versions of sucker rod pumps. By constructive design pumps correspond to API 11 AX specification.

Automatic break out tongs with pneumatic drive and suspended tubing tongs are used as part of drilling units for making up and breaking out drill pipes and castings in round trip operations when drilling oil and gas wells.

Fishing tools – fishing spears and sucker rod sockets for external gripping are intended for gripping and pulling out tubing, bottom-hole pumps, downhole motors and sucker rods during elimination of sucker rod failures.

PRODUCTS RANGE OF IZHNEFTEMASH

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QUALITY ASSURANCE & CONTROL AT IZHNEFTEMASH (OIL & GAS EQUIPMENT)

Izhneftemash’s quality management system covers all production stages from engineering to utilization at customer’s facilities. System fully corresponds to international standards ISO 9001 and API QR. Quality management system had been granted certificates ISO-9001 № 0094 and API Spec Q1 № Q1-0015

All equipment produced by JSC “Izhneftemash” has certificates of conformance issued by Russian State Standart

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Drilling:

• Taimyrnefterazvedka

Well logging:

• Tomskneftegazgeophysica• Yuganskneftegazgeophysica

TaimyrnefterazvedkaThe companies account for more than 40 years of service experience in Russia's Far North (Eastern Siberia)

Activities:• Mobilization• Rigging-up • Exploration drilling• Formation testing • Completion

The company has own logistic system and 4 facilities for storage materials and service equipment. Taimyrnefterazvedka is capable of drilling wells in hard geological conditions with both abnormally high and low formation pressures, for example at record-depth of 4521 m, in the Tukolando-Vadinsk area. As a result of exploration works in Taimyr region 18 oil fields were discovered and reserves of 14 oil fields were included in operation

Tomskneftegazgeophysica & Yuganskneftegazgeophysica

The companies account for more than 40 years of service experience in geophysical surveys and logging.More than 60 geophysical crews in the companies, as well as their own stores of explosives and radioactive materials, are just some of the competitive advantages of these companies

Activities:• oil & gas wells completion and rehabilitation • drilled wells survey• wells in service survey• perforation• hydrodynamic survey of wells • geologic-geophysical data interpretation of wells survey • technological operations inside of wells (accident

elimination, stimulation of oil production, swabbing, etc.)

Formation EvaluationFormation Evaluation

BUSINESS UNIT «FORMATION AND EVALUATION» - DRILLING IN EASTERN SIBERIA AND WELL LOGGING IN KHANTY-MANSIYSK AND THE TOMSK REGION









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UNGGF AND TNGGF ARE KEY PLAYERS IN MAJOR OIL REGIONS OF WESTERN SIBERIA

About the Companies:• «Uganskneftegazgeophysica» was established in 1963. Now it is the biggest

well logging company in Nefteugansk region of Khanty-Mansiisk AD• Key customer: «RN-Uganskneftegaz» (Rosneft)• More than 50 well logging crews, own stores of explosive and radioactive

materials

• «Tomskneftegazgeophysica» was established in 1969. Now it is the biggest well logging company in Tomsk region

• Key customer: «Tomskneft» (Rosneft and Gazprom Neft)• The company consists of 17 geophysical crews

Main services of the Companies – well logging:• Drilled wells survey• Wells in service survey• Perforation• Well testing• Log interpretation and evaluation• Inside wells technological operations (accident elimination, stimulation of oil production,

swabbing, etc.)Staff: 560 person

100%=$71 mln

65%

18%

17%

Market volume, 2008

Services

27%

37%

45%

Market share

55%

34%

81%100%=$18 mln

Well logging marketNegteugansk Region

Well logging market Tomsk RegionMarket share

Perforation

Wells in service survey

Drilled wells survey

35%

25%40%

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RIMERA COMPANIES PROVIDE WIDE RANGE OF WELL LOGGING SERVICES IN WESTERN SIBERIA

Drilled wells surveyDrilled wells survey

Wells in service surveyWells in service survey

PerforationPerforation

• Wireline logging: directional survey electrical methods (laterolog, microlaterolog, contact logging, lateral logging sounding, induction logging (IL), multiplesonde IL,

caliper logging, geometry logging, SP logging) radiation methods (gamma ray logging, neutron logging, gamma-gamma geometry logging, nuclear cement top location, thermal

neutron die-away logging) acoustic methods high-frequency logging gyroscopic methods geotechnical study mud ligging

• Drilled pipe logging (AMAK equipment)• Rigid cable logging

• Temperature logging• Barometry• Water content measurements• Flow measurement• Resistivimetry• Gamma ray logging + collar logging• Geometry logging• Acoustic logging• Carbon-oxygen logging

• Wireline perforation• Tubing conveyed perforating• Oil-well blasting• Explosive packer installation• Formation stimulation by powder generator of pressure

Log interpretation and evaluationLog interpretation and evaluation

• Complex log interpretation and evaluation: wells in service survey drilled wells survey

Well testingWell testing

• Drill steam test in open and cased holes• Establishment of pressure-recovery and level–recovery curves• Working with ejector pumps

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chelpipe group

Documents

strategy of chtpz group

russiachtpz group

plant chtpz

maintenancechelpipe

largest pipe producer

energy sector chtpz

world largest pipe plant

total russian pipe output