R&D initiatives and cooperation

New technologies and innovative products introduction is the key competitive drivers in the global pipe market. TMK’s research centers RosNITI located in Chelyabinsk (Russia) and TMK’s Houstonbased R&D center (USA) are engaged in extensive research liaising with specialised R&D organizations and universities and aligning scientific and technological cooperation with TMK’s major consumers. The centers assist TMK’s enterprises in developing new facilities, technologies and products.

The centers mainly focus on:

We consistently build up our R&D activities. In 2014, TMK signed an agreement with the Skolkovo Joint Directorate on Assets and Services Management on the design and construction of ТМК’s R&D facility in the Skolkovo Innovation Center. Although completion is scheduled in 2016, the facility has already started its activities as a Skolkovo resident member. To pursue the top priority goals of the Skolkovo Energy Cluster, the center has started working on new technologies and materials for welded pipe used for highly efficient and safe long-haul transportation of hydrocarbons and designing pipe and threaded connections for unconventional and hard-to-reach hydrocarbon fields.

The developments piloted and brought on-stream in 2014 include:

TMK entered into an R&D coop eration agreement with Gazprom for the period of 2015-2020

In December 2014, we entered into an R&D cooperation agreement with Gazprom for the period of 2015-2020. The agreement outlines a cooperation programme focusing on the development of new tubular products, import substitution initiatives, best practices sharing and joint research. We are planning to develop and launch 25 products, including 10 new products and 15 import replacement products, such as pipe with improved strain capacity for deep water pipelines; tubing, casing and drilling pipe for wells in adverse conditions and offshore projects. The programme actively promotes further steps in the development of TMK’s premium products, including products with lubricantfree coating and in application of new compositions and materials. We have been successfully building up R&D cooperation with Gazprom since 2003. The companies signed medium-term R&D cooperation agreements in 2006 and 2012. These helped to launch dozens of new products, including vacuum insulated tubing), 13Cr-grade pipe, high-strength grade pipe used in aggressive environments, etc.

For many years, we have been cooperating with Gazprom Neft and supplying pipe for oil production and transportation, including those with premium threaded connections. Our R&D cooperation programme has been effective since 2013.

We have jointly concluded that TMK’s production capacity, product range and R&D potential as well as geography of its assets enables the Company to meet Gazprom Neft’s ongoing and future demand for any type of tubular products for both onshore and offshore projects. We decided to expand the scope of our cooperation with Gazprom Neft to set up a technological partnership, We signed a technological partnership programme for 2015-2017. The programme mainly focuses on developing and supplying new and import replacement products, providing services, supporting conceptual engineering for well construction equipment and technologies and looking into an opportunity to create a single R&D platform for the development of Gazprom Neft’s new complicated oil fields. Another work stream of the programme focuses on integrated well completion, also by applying multi-stage hydraulic fracturing.