Sumitomo Metals and Sumitomo Corporation Won Large-Diameter Welded Line Pipes Order to Abu Dhabi Crude Oil Pipeline Project

Sumitomo Metal Industries, Ltd. (Sumitomo Metals) and Sumitomo Corporation (SC) have been awarded a contract for approximately 100,000 metric tons of large-diameter welded line pipes by International Petroleum Investment Company (IPIC), an enterprise wholly owned by Abu Dhabi government. Sumitomo Metals and SC will be the primary suppliers of these pipes, which will be used to build an above-ground crude oil export pipeline.

1. Contract Details:
1) Product: large-diameter welded line pipes
- manufactured by Sumitomo Metals Kashima Steel Works, coated in UAE
2) Quantity: Approx. 100,000 metric tons (190km)
3) Size: 48" (outside diameter)
4) Delivery: End of July through end of December, 2008

2. Background:
UAE plans to build this pipeline as part of its national strategy to ensure stable crude oil exports. This is the first pipeline to link the Habshan field directly with Fujairah, a port city on the Gulf of Oman. The pipeline will be 360 kilometers long and use 220,000 metric tons of pipes. Sumitomo Metals won this order due to its leading pipe technology and outstanding track record in supplying large-diameter welded line pipes worldwide.

3. Future Outlook:
Sumitomo Metals and SC are the world's leading suppliers of large-diameter welded line pipes. Several large-scale crude oil and natural gas development projects are in the works, so we expect an increasing demand for large-diameter welded line pipes and oil country tubular goods going forward, particularly in the Middle East. Sumitomo Metals and SC plan to take part in these projects as well.

Profile of IPIC

Company Name: International Petroleum Investment Company
Primary Business: Investment in the energy sector
Date of Establishment: May 29, 1984
Headquarters: Abu Dhabi, UAE
Managing Director: Khadem Al Qubaisi
Primary Shareholder(s): Abu Dhabi Government (100% stake)