Iran, Spanish Company Sign $615 Million Deal for Oil Pipes

May 24, 2017

TEHRAN, Iran — Iran on Wednesday signed a deal worth $615 million — or euros 550 million — with a Spanish-Iranian consortium under which the group will provide pipes used in Iran's oil industry.

It was the first major deal for Iran's oil industry since President Hassan Rouhani's re-election last week to another term in office on a platform of reform and greater openness to the international community. The consortium, which includes Spain's Tubacex S.A. and Iran's Foolad Isfahan Company, will produce pipes made of a corrosion resistant alloy for a network of 600 kilometers, or about 370 miles, over three years.

The statement said the pipes will be produced using Japan's JFE Steel Corporation technology, and that the know-how will eventually be given to the Iranians.

At a ceremony marking the signing, Iran's Oil Minister Bijan Zanganeh said he was "delighted that a deal worth more than 550 million euros is being signed."

"The Iranian manufacturer is happier than us and perhaps our foreign partner is the happiest party of all today, to have secured itself a long-term market" in Iran, Zanganeh added.

The minister said that during the years of punitive sanctions...

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