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Sumitomo Metals receives award as 2007 Supplier of the Year

2007 Supplier of the Year from Shell Exploration and Production Asia Pacific
2007 Supplier of the Year from Shell Exploration and Production Asia Pacific

Sumitomo Metals receives award as 2007 Supplier of the Year from Shell Exploration and Production Asia Pacific

Sumitomo Metal Industries Ltd (Sumitomo Metals) together with Sumitomo Corporation have received the Supplier of the Year in 2007 award from Shell Exploration and Production Asia Pacific (Shell EPA).

Shell EPA gives this award every year to a few suppliers who are selected by a survey among their staff/engineers.

For 2007, Sumitomo Metals was awarded as one of the Suppliers of the Year in recognition for its overall performance with the Shell EPA organization particularly in relation to the global relationship with Shell.

The other awards are given to companies in Mud Logging, Professional Manpower Services, and Drilling Fluid suppliers. Sumitomo Metals was the only OTCG supplier to receive an award this year.


 

Sumitomo Metals Wins New Long Term Contract with Statoil

     Sumitomo Metal Industries Ltd (Sumitomo Metals) has 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 will supply high-end and super high-end seamless OCTG, 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, and making it increasingly important for Sumitomo Metals to supply reliable OCTG products.

     Sumitomo Metals have been supplying OCTGs and line pipes (principally high-end products) to Statoil since the late 1980's, 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 Sumitomo's 20-year track record, Statoil acknowledged their reliable performance, and edge in products quality, especially in high grade material and premium connections. Consequently, Sumitomo Metals were deemed to be the best supplier, and were awarded another contract.


 

Sumitomo Metals is commended by BP for its safety management in the provision of super
duplex stainless steel and carbon steel seamless line pipes for BP’s North Sea project.

Rhum Field Development project Safety Management Award

     Sumitomo Metals was commended by BP—with whom we have a long-term contract for the supply of steel tubes and pipes—for our safety management performance (from manufacturing to shipment) in the provision of high-alloy steel and carbon steel seamless line pipes for BP’s North Sea (Rhum Field Development) project, and we received their Safety Management Award at Wakayama Steel Works on April 6.

     The project involves the construction of submarine pipelines for carrying gas produced in the North Sea over a distance of 45km. The pipelines comprise super duplex stainless steel pipes (DP3W, 895 metric tons) and carbon steel pipes(X65, 2,061 metric tons) manufactured at the Wakayama Steel Works. It Should be noted

that this is the largest single order that we have ever received for heavy wall (27mm) super duplex stainless pipes with high corrosion resistance.

     The pipelines have already been laid and gas production started last December. BP is one of the world’s major oil companies and it places a special emphasis on HSE (Health, Safety, and Environment) management. Accordingly, as an important requirement for awarding long-term contracts, it demands that steel pipe suppliers perform meticulous HSE management.

     We thoroughly implement safety management in the course of manufacturing to ensure the stable supply of high-quality steel tubes and pipes.


 

Order Received for Steam Generator Tubes for Qinshan Nuclear Power Plant in China

     Sumitomo Metal Industries, Ltd. and Sumitomo Corporation received its first order from China (amounting to 1 billion yen) to supply steam generator tubes for the Qinshan Nuclear Power Plant in China.

The steam generator tubes will be supplied to and assembled by a Chinese company, Shanghai Boiler Works, Ltd. In response to recent power shortages, China plans to build 28 new nuclear power plants (27 million KW) by 2020 and the demand for steam generator tubes translates into good prospects in a market estimated to be worth some 40 billion yen. This first entry into the order books represents an extremely important step regarding future opportunities.

Dr. Ueda Wins NACE Award

      Dr. Ueda, General Manager of Quality Control and Technical Service Department of our company, is the recipient for the 2006 Frank Newman Speller Award conferred by NACE International. This award recognizes the significant contributions Dr. Ueda has made to corrosion engineering.

     Because only one scientist receives the honor each year, this is considered by corrosion scientists to be the world’s most prestigious award. Dr. Ueda has worked with us over the years to develop the materials for pipes and tubes with the result that our high-end seamless pipes, used mainly in the production of oil/natural gas and transportation, are seen as being among the best in the world. He has also contributed to the technological innovation within the industry in relation to the development of oil and natural gas resources.

Dr. Ueda is the recipient for the 2006 Frank Newman Speller Award
Dr. Ueda is the recipient for the 2006 Frank Newman Speller Award
     When producing oil or natural gas, the constituents of steel need to be controlled to avoid steel pipe corrosion caused by such factors as the temperature inside a well and the concentration of CO2 and H2S. The selected constituents have generally been tested under certain conditions in order to confirm whether they are applicable or not. Dr. Ueda, however, examined the proportion of auxiliary materials such as Cr, Ni and Mo to be alloyed in his study of spontaneous passivity. Depending on the proportion, new films are developed to shield from corrosion occurred and prevent it from advancing further. His study greatly contributed to the development of Sumitomo's new SM Series, the high-corrosion resistance oil country tubular goods (OCTG).
Dr. Ueda is the recipient for the 2006 Frank Newman Speller Award

     He is only the second Japanese to have received the award since it was established in 1971.

     On March 15, the award ceremony was held during the NACE International academic conference in San Diego, the United States (Corrosion 2006) with the attendance of 4,500 scientists and Dr. Ueda gave a commemorative lecture. He introduced our company’s history of technological development based on his study of spontaneous passivity whereby auxiliary materials produce a protective film that reacts with base metal. The new SM Series consisting of Cr bearing steel pipes, stainless steel pipes, and Ni-based alloy pipes is also one of the product lines he played a leading role in developing. The advanced technology of the product line has greatly reduced the complexity of developing oil/gas wells and significantly contributed to the growth in global demand for energy. The award Dr. Ueda has received represents the world's acknowledgment of the innovations incorporated into our products as well as the excellence of our technology.



Developed High Strength Sour Service SM-125S

     Sumitomo Metals, as a world-leading company in the OCTG industry has developed a new high strength, low alloy, sour service material, SM-125S, through joint R&D programs with Statoil ASA & bp as well as our own program.
Micro Structure Steel
Micro Structure
New Steel
     This material is intended for casing applications under mild sour conditions, and has a higher YS min. 125 ksi (862 MPa) than the one for conventional C110 min. 110 ksi (758 MPa), previously known as the highest strength grade for sour service.

     This material is expected to spread through out this industry, which is looking for higher strength anti-corrosion OCTG for its development of gas wells or deep wells for the foreseeable future. This new development was presented at EuroCorr2004 a co-written paper by bp and Statoil ASA in September 2004.


VAM® TOP CLEANWELL® Success on Trial Run for Norsk Hydro

     Sumitomo Metals’ dope-free VAM® TOP CLEANWELL® 9-5/8” 53.5# P110 was run on March 22nd for Norsk Hydro. 88 pipes or 1100m of the string were successfully set up and put in the well without any rejection and trouble.

     VAM® TOP CLEANWELL® is a dope-free solution that features NO re-doping in “rig preparation” process and is totally environmentally-friendly with NO discharge into environment. The anti-corrosion and lubricating coating on VAM® TOP connection is applied in the threading line of Sumitomo Metals under its severe quality control. The trial was held on the “Oseberg South” platform which is 133km offshore from Bergen, Norway. In accordance with Norwegian regulations, this operation was carried out following a fully automatic make-up procedure and took approximately 7 hours to run 1100m of the string. Engineers from Norsk Hydro and Sumitomo Metals witnessed this operation and were fully satisfied. Based on this success, Norsk Hydro will in near future plan to perform a similar test for 7” L80-13CR pipe in order to evaluate adapting this product to comply with their zero discharge target for all casing and tubing strings.

VAM® TOP CLEANWELL®
VAM® TOP CLEANWELL®

 

     VAM® TOP CLEANWELL® was developed to comply with customer’s requirements that need “Easy Rig Preparation” and “Environment Friendliness”. Sumitomo Metals promotes VAM® TOP CLEANWELL® as a next generation product that does not require any thread compounds.


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