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GIPI Shareholder Agreement Signing Ceremony – Welcome Speech, given by Shk. Ali bin Hamel Al-Ghaith

Your Excellency Nasser bin Khamis Al-Jashmi
Your Excellencies, Honourable Guests,
Distinguished participants,
Ladies and gentlemen

Assalamun Allaikum Warahmatullwahi Wabarakatuh

It is an honour and a privilege to welcome you to this Shareholder Agreement signing ceremony marking an important milestone for Gulf International Pipe Industry in its path towards establishing a state of the art Line Pipe, Casing and Coating Industry for the regional Oil and Gas sector.
Your Excellencies/Distinguished guests;
On behalf of GIPI, we would like to express our heartfelt thanks to the Shareholders, Board and Management of Awtad, Gulf Investment Corporation, POSCO STEEL SERVICES & SALES COMPANY and ARQAN for the confidence in Committing to enter into this Joint Venture that will establish the first ever high pressure steel pipe and casing mill of 24” to be operated in the GCC region.
We were delighted to be able to attract such highly reputable regional and international investors to this venture in the Sultanate of Oman. This is further evidence of the strong confidence that the regional and international business community have in the economy of the Sultanate of Oman Under the wise leadership of our Majesty Sultan Qaboos bin Said.
This mill will further enhance the Sultanate’s aspiration for reducing dependency on import of finished products needed to service its strategic oil and gas sectors and complement the Government’s efforts in promoting downstream ventures in the Sultanate.
GIPI’s 24” ERW Pipe and Casing Mill will be located in the Industrial zone of Sohar and capable of producing 250,000 tons per year. The plant and associated facilities is estimated to cost 100 million US Dollars and will generate over 150 employment opportunities directly and indirectly.
Your Excellencies/Distinguished guests;
We take this opportunity to thank the Ministry of Oil and Gas, the Ministry of Commerce, Petroleum Development of Oman, Oman Gas Company and Occidental for their support and positive gesture to initiatives such as GIPI.
We wish to conclude by highlighting that this milestone is the beginning of even greater challenges ahead for GIPI and we look forward to the support of our partners MillTech, Gulf International Bank, McLellan, Trowers & Hamlins and many other partners on this journey.
Finally our appreciation is also extended to our guests from Oman TV and the news media for attending this ceremony.

Thank you very much for your participation.

 
GIPI to establish US$100 million Pipe and Casing Mill in Sohar, 26th March, 2007 , Sultanate of Oman

Gulf International Pipe Industry LLC (GIPI), announced that it had signed a Shareholders Agreement to establish a state of the art (5th generation) 24” ERW Pipe and Casing Mill in the Industrial zone of Sohar capable of producing 250,000 tons per year. GIPI stated that this will be the first 24” ERW Pipe and Casing Mill in the GCC.
The signing ceremony was held in Muscat under the auspices of His Excellency Nasser bin Khamis Al-Jashmi, the Undersecretary at the Ministry of Oil and Gas.
GIPI would be the first ever high pressure steel pipe and casing mill of 24” to be operated in the GCC region. This mill will further enhance the Sultanate’s aspiration for reducing dependency on import of finished products needed to service its strategic oil and gas sectors. Developing this downstream venture in the Sultanate will complement similar efforts by the Government towards promotion of local industries.
The Shareholder Agreement was signed by representatives of the partners from Awtad a local subsidiary of Al-Ghaith Holdings based in UAE, Golden Dunes Investments representing local promoters, Gulf Investment Corporation (GIC), POSCO Steel Services and Sales Company a sales arm for POSCO the world’s 3rd largest Steel producer based in Korea and Arqan Group LLC a reputable local business entity.
Upon signing the agreement, Hisham Abdulrazzaq Al-Razzuqi, CEO of GIC said “We are very pleased to increase our commitment to the expanding Omani economy through this new investment. We believe that the project will enhance employment opportunities and be part of a growing trend to expand the contribution of the manufacturing sector in Omani GDP and to support other complementary ventures”.
The joint venture will leverage the complementary strengths of the different partners in High grade Raw Material supply, Market intelligence, Financial expertise, know-how including world-class technology in Pipe, Casing and Coating. These synergies will enable GIPI to be a leader in the region in supplying quality products to its local and regional customers. The Mill is designed to meet the stringent Globally recognized certification requirements such as API/ISO and Customer specific quality standards.
GIPI earlier signed an MoU with MillTech, a well-known Pipe Mill supplier from Korea who will be responsible for delivering the Pipe Mill on an EPC basis scheduled to be commissioned towards the end of 2008. Gulf International Bank (GIB) will be supporting GIPI to raise the needed debt finance, with a UK based company Mclellan providing Independent Consultancy for the Lenders. Trowers & Hamlins were appointed as Legal Advisors for the project whilst HMR were appointed as Environmental consultants.

About Awtad

Awtad was established as a local wing of Al-Ghaith Holdings a highly reputable group based in the UAE. This group is majority owner of Shadeed Steel currently under construction in Sohar which also recently signed an MoU with Jindal of India for a US$4 billion venture to extend the Shadeed Steel into Production of Seemless Tubes.

About Golden Dunes Investment LLC (GDI)

GDI was established to represent the founder members who possess a combined total of over 60 years experience in the Oil and Gas Industry. The founders successfully engaged local, regional and international Partners of excellent repute to participate in the project with combined strengths and synergies in all aspects of the product value chain.

About Gulf Investment Corporation (GIC)

GIC was established in 1983 and is equally owned by the six member states of the Gulf Cooperation Council. GIC provides a range of financial services that support the development of private enterprise and economic growth in the region. It is one of the most highly capitalized financial institutions in the region. As at end 2006, GIC had total assets exceeding USD8.1 billion and shareholders' equity of about USD1.9 billion.

About POSCO Steel Services and Sales Company (POSTEEL)

POSTEEL was established in 1994 as a subsidiary and a sales arm of POSCO which is the world 3rd largest steel mill and produced 31million tons of steel products in 2006. The turnover of POSTEEL in 2006 was U$1.45 billion. It has 17 overseas affiliates that are mostly steel processing centers in China and SEA.

About Arqan Group LLC

Arqan, founded by a reputable local business group, is very pleased to be a partner in this venture which brings together tremendous synergy in various attributes of the project to provide the Oil and Gas sector in Oman with the needed comfort of reliability and timely supply of high quality line pipe and casing as finished products to their door steps.