Iran, Spanish company sign $615 million deal for oil pipes

AP News
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Posted: May 24, 2017 7:39 AM

TEHRAN, Iran (AP) — Iran has 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's the first major deal since President Hassan Rouhani's re-election last week to another term in office on a platform of reform. 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.

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

Iran has been trying to renovate its oil industry since the 2015 landmark nuclear deal with world powers.