Sumitomo Metal Industries Ltd (Sumitomo Metals), and Sumitomo Corporation (SC) have been awarded an exclusive five-year Oil Country Tubular Goods (OCTG) supply contract by the Norwegian energy company Statoil ASA (Statoil). Under the contract, Sumitomo Metals and SC will supply high-end and super high-end seamless OCTGs, one of the mainstay products of Sumitomo Metals. The contract also calls for the supply of a new item, super duplex, annual demand for which is expected to be in the range of 500-1,000 tons.

Statoil is Scandinavia's leading energy company. Headquartered in Norway, it has a presence in more than 30 countries. Statoil primarily uses VAM brand premium connection for its OCTGs. The company is expanding its operations from the Norwegian Continental Shelf to international markets, making it increasingly important for Sumitomo Metals and SC to supply reliable OCTG products.

Sumitomo Metals and SC have been supplying OCTGs and line pipes (principally high-end products) to Statoil since the late 1980s, with total supply to date of approximately 1.2 million tons. As the current long-term contract will expire in March 2008, a new tender (for 2008-2013) was announced at the end of 2006. Based on a 20-year track record, Statoil acknowledged Sumitomo's reliable performance and edge in product quality, especially in high-grade material and premium connections. Consequently, Sumitomo Metals and SC were deemed to be the best supplier, and were awarded another contract.

Sumitomo Metals and SC have also been concluded with Statoil a five-year basic agreement from 2007 for seamless line pipes with 13% chrome content.

* All weight figures are in metric tons.

References 1 : Seamless OCTG supply details
Category	Item	Supply mill		Annual Quantity
Super high-end OCTG	Super Duplex	Sumitomo Metals		500-1,000mt
	13% Chrome	Sumitomo Metals (JFE as back up)		8,000-10,000mt
High-end OCTG	Heat treated carbon grade + VAM	Sumitomo Metals		32,000mt
* Super Duplex: a kind of high alloy

Reference 2 : Statoil ASA
a) Activity :	Scandinavia's leading energy company
b) Headquarters :	Forus Stavanger, Norway
c) Establishment :	1972
d) Capital :	Nok 43,143 mill
e) Sales :	Nok 425,169 mill (2006)
f) Major Shareholders :	Norwegian state 70% Financial banks etc.
g) Chairman and CEO :	Jannic Lindbaek and Helge Lund