ChelPipe’s overall strategic objectives are to strengthen its leading position as a steel pipe producer for the Russian market and to become a leading supplier of integrated solutions for oil and gas distribution and production in Russia.
To advance its objective, ChelPipe plans to pursue the following strategies:
ChelPipe produces welded and seamless steel pipe products for use in the oil and gas industry and a variety of other industries at two main production facilities in the Ural region of Russia. The first, the Chelyabinsk Pipe-Rolling Plant is located in Chelyabinsk. The second, the Pervouralsky Novotrubny Plant is located in Pervouralsk (near Yekaterinburg). The majority of ChelPipe’s sales of steel pipe products are in Russia.
In line with its strategy of expanding the scope of its operations beyond its core steel pipe business with the aim to become a leading supplier of integrated solutions for oil and gas distribution and production in Russia, in 2008 ChelPipe acquired several oilfield services businesses which produce oil well extraction equipment and provide a number of other products and services for various stages of an oilfield’s development, and during the second half of 2010 ChelPipe acquired several trunk pipeline systems businesses that produce customised components for pipeline construction.
ChelPipe produces welded and seamless steel pipe products for application in the oil and gas industry and a variety of other industries, including equipment manufacturing, construction, power-generation, chemicals and petrochemicals, automotive, aviation and aerospace. ChelPipe produces steel pipe products in more than 28,000 different sizes and profiles from over 200 grades of carbon, alloy and stainless steel and covered with corrosion resistant and heat resistant coatings.
ChelPipe’s welded pipe products are LDP and welded industrial pipe and its seamless pipe products are OCTG, Line Pipe and seamless industrial pipe.
LDP is used in oil and gas pipelines for long distance transmission and for transporting crude oil and natural gas over shorter distances from wells to refineries, storage tanks and loading and distribution centres.
ChelPipe currently produces three lines of electric weld longitudinal LDP:
single seam LDP, with diameters of 530 mm to 820 mm, wall thickness of 8 mm to12 mm and lengths of 12 meters;
single seam LDP, with diameters of 530 mm to 1420 mm, wall thickness of 8 mm to 48 mm and lengths of 12 meters or 18 meters;
double seam LDP, with diameters of 1020 mm to 1220 mm, wall thickness of 12 mm to 22 mm and lengths of 12 meters.
ChelPipe’s new state of the art Vysota 239 LDP facility is where ChelPipe produces single seam LDP with diameters up to 1420 mm, wall thickness of 8 mm to 48 mm and lengths of 12 meters to 18 meters.
ChelPipe also provides inside and outside anti-corrosion coatings for all of its LDP products, if required by customers.
ChelPipe’s LDP products are certified by applicable Russian and most international standards, including GOST and American Petroleum Institute («API») standards. In addition, ChelPipe’s LDP products have been approved for use by the primary Russian sponsors of oil and gas pipelines in Russia, including Transneft and Gazprom.
The OCTG that ChelPipe produces are casing pipe and tubing for use in oil and gas wells. ChelPipe also produces Line Pipe used for transporting crude oil and natural gas from wells to pipelines. ChelPipe produces only OCTG and Line Pipe made from seamless pipe.
ChelPipe currently produces three types of OCTG:
Surface casing, which is used to protect water bearing formations during the drilling of a well. ChelPipe produces two lines of surface casing:
diameters of 114.3 mm to 177.8 mm; and
diameters of 245 mm to 425 mm.
Production casing, which forms the structural liner in oil and natural gas wells to provide support and prevent collapse during drilling operations. ChelPipe produces two lines of production casing:
diameters of 114.3 mm to 177.8 mm; and
diameters of 245 mm to 425 mm.
Production tubing, which is placed within the casing and is used to convey oil and natural gas to the surface, and is typically replaced many times during the life of a producing well, with diameters of 60.3 mm to 114.3 mm.
ChelPipe produces Line Pipe with diameters of 60.3 mm to 114.3 mm.
ChelPipe’s OCTG and Line Pipe products are certified by applicable Russian and most applicable international standards, including API 5CT, GOST 633 and 52203 and Technischer Uberwachungs-Verin («TUV») standards. In addition, ChelPipe’s OCTG and Line Pipe products have been approved by the primary owners and
Seamless industrial pipe is used for various industrial applications that require transportation of steam, water, gas and air under high pressure, including in the equipment manufacturing, construction, power-generation, chemicals and petrochemicals, automotive, aviation and aerospace industries.
ChelPipe produces seamless pipe for a variety of industrial uses, including high margin niche applications. Below is a list of certain of the types of industrial steel pipe produced by ChelPipe:
Hot-rolled pipe used in various industries, including construction, industrial plant engineering and machinery. ChelPipe currently produces three lines of hot-rolled pipe:
diameters of 32 mm to 219 mm and wall thickness of 2.9 mm to 45 mm;
diameters of 108 mm to 159 mm and wall thickness of 5 mm to 14 mm; and
diameters of 245 mm to 550 mm and wall thickness of 8 mm to 90 mm.
The aforementioned types of seamless pipe are certified by applicable GOST and TUV standards.
Welded industrial pipe is used for various applications, including mechanical engineering and construction.
ChelPipe currently produces four primary types of welded industrial pipe:
Water and gas pipe ranging from 21.3 mm to 88.5 mm in diameter with pipe wall thickness of 2.35 mm to 4.85 mm. Water and gas pipes are used for plumbing and gas pipelines, heating systems, and as components in plumbing and gas pipeline systems. The pipe can be galvanised to make it rust proof, if required by customers.
Transmission pipe with diameters from 57 mm to 203 mm and wall thickness from 7 mm to 45 mm, used in equipment manufacturing. ChelPipe also produces cardan shafts ranging from 50 mm to 114 mm in diameter with pipe wall thickness of 2 mm to 5 mm.
«ERW» small diameter pipe with diameters of 10 mm to 76 mm. ERW small diameter pipe is used in a number of industries: construction, housing and community amenities, energy, and engineering industry.
Galvanised Small Diameter Pipe with diameters ranging from 4 mm to 8 mm for use in refrigerators.
ChelPipe’s trunk pipeline systems business produces customised components for LDP pipelines construction, which consists of bends and pipeline hubs. In addition, the business produces short radius elbows for various industrial applications
ChelPipe produces hot-formed pipeline bends with diameters up to 1,420 mm and wall thickness up to 30 mm, primarily for LDP oil and gas pipelines. Hot-formed pipeline bends can be produced for angles of up to 180 degrees.
In addition, ChelPipe provides cold formed bending services that can modify the angle of an existing pipe or a pipeline bend from 1 degree to 7 degrees.
ChelPipe also provides anti-corrosion coatings for the pipeline bends it produces, if requested by a customer.
ChelPipe’s pipeline bends are certified by applicable Russian and most international standards, including API, GOST and TUV standards.
A pipeline hub is a welded construction of a bend and pipes. ChelPipe produces pipeline hubs primarily for LDP oil and gas pipelines.
ChelPipe’s pipeline hubs are certified by applicable Russian standards, including GOST and TUV standards.
Valves are pipeline components that start, shut off, regulate and control the flow of fluid or gas in a pipeline. ChelPipe produces ball valves, primarily for oil and gas pipelines, and gate valves, primarily for oil pipelines. In addition, nuclear valves are produced for energy companies and valves with German Standardisation Institute (Deutsches Institut für Normung) («DIN»), API and ANSI industry certifications are produced for various industrial applications.
ChelPipe is also capable of producing valves that are large enough for use in LDP oil and gas pipelines and ChelPipe intends to increase production of these valves for sale to its LDP customers.
The valves that ChelPipe’s trunk pipeline equipment business produces for various industrial applications have DIN, API, ANSI and GOST industry certifications.
A short-radius elbow is angled pipeline component manufactured for portions of a pipeline that are not straight and are significantly smaller than bends.
ChelPipe produces short-radius elbows with diameters ranging from 45 mm to 820 mm and with specifications that meet the requirements of companies operating in a wide range of industries, including oil and gas, manufacturing, construction and utilities. Short-radius elbows are not used in LDP pipelines.
ChelPipe’s short-radius elbows are certified by applicable Russian standards, including GOST and TUV standards.
ChelPipe produces stamp-welded pipe joints (SWPJ), mainly, pipe bends and T-joints for pipe branching, as well as pipe seal fittings and pipe adapters.
The joints have the best specifications thanks to innovative nanostructured materials for welding and weld joint reinforcement.
ChelPipe has unique technological advantages to ensure that global quality standards can be met at a competitive production cost and minimum delivery time.
ChelPipe manufactures, sells and rents oil well extraction equipment such as electric submersible pump («ESP») systems, provides installation and maintenance services in respect of ESP systems and provides additional products and services for various stages of an oilfield’s development.
ChelPipe manufactures oil well extraction equipment such as ESP systems and sucker-rod pumps («SRPs»).
ESP systems are sophisticated systems used to extract oil from wells, whose primary components are ESPs and electric submersible motors («ESMs»). ESP systems also include a number of other components such as gas separators, hydro protectors, cable lines and control switchboards. ESPs are consumable products that have a useful life of approximately three years. ChelPipe produces ESPs with power ranges from 0 50 m3 of fluid per dayto 200 500 m3 of fluid per day. ChelPipe produces two types of ESPs, grey cast iron ESPs and corrosion resistant Ni-resist cast iron ESPs. Ni-resist cast iron ESPs offer technological performance that is superior to grey cast iron ESPs and they are becoming the industry standard for oil well extraction in Russia, particularly in harsher environments.
SRPs are a less sophisticated type of oil extraction technology, primarily used for shallow wells with slower flow rates.
ChelPipe also provides installation, monitoring and maintenance services for ESP systems and SRPs, including the sale of spare parts.
ChelPipe’s ESP systems and SRPs are certified by applicable Russian GOST and most international standards, including ISO 9001, ISO 14001, API Q1 and API 11AX.
ChelPipe provides geophysical investigation services such as well survey and downhole logging. Well survey services consist of geophysical assessments of wells in the course of drilling, primarily to understand the seam structure and potential uses of wells. Downhole logging services consist of geophysical assessments of wells in a producing reservoir, primarily to monitor the condition of well casing pipe to determine a place for perforation.
ChelPipe also provides perforation services, which consists of the creation of holes in casing pipes to enable communication between the well and reservoir. Perforation holes are used for the extraction of reservoir fluid as well as the injection of water, gas, cement or other agents into a bed formation or an annular body to intensify the inflow of reservoir fluid into the well.
In addition, ChelPipe manufactures well construction and transportation equipment such as water injection pumps, cement complexes, mixing trucks, spinning wrenches and circulating pumps.