Jesco, a seamless pipe mill in Jubail, Saudi Arabia, completed its fourth year of operations, producing a total of 217,000 metric tons of pipes. This is a reduction from the previous year of some 62,000 metric tons, primarily due to a slowing down in orders from Aramco, the national oil company of Saudi Arabia. In 2014, the shipping volume was roughly 70% to countries outside of Saudi Arabia, with the balance to local clients.
During 2014, Jesco successfully fought off a dumping suit in the United States. With the suit having been dismissed, Jesco was able to re-start selling its products to the USA.
2015 will be a challenging year for Jesco due to the fall in oil pricing globally. However, exploration and production continues at a brisk rate in the GCC region and the mill is looking at an increase in its order book in the light of recent and upcoming order inflows from major end users in the region.
Jesco was constructed by Danieli, Italy, during 2007 - 2009, to produce pipes in the range between 5.1/2-16 inches diameter and a capacity of 400,000 metric tons annually. The mill has recently upgraded its capacity to produce some 450,000 metric tons of pipes with a range from 4.1/2 inches to 16 inches in diameter.
The factory focuses on the production of seamless casing and line pipes to API specifications for the oil and gas industry.
Jesco is now approved by Aramco, Saudi Arabia; ADNOC, Abu Dhabi; PDO Shell, Oman; SOC & MOC in Iraq; as well as many firms in Egypt, other nearby markets and North America.
For the 2015 calendar year, Jesco plans to produce 280,000 tons, keeping a balance of roughly 40% for the domestic market and 60% for export.