TMK(LSE: TMKS) announces today that it has entered into an agreement to license TMK FMC premium connection technology to Chinese tubular producer Beijing Huayou Xingye Materials Co (BHXM).

TMK-Premium Service, a TMK subsidiary specialised in the production and supply of premium connections to the oil and gas sector, concluded the agreement with BHXM. Under the licensing agreement, BHXM will produce 20 thousand tonnes of TMK FMC premium casing connections per year. Production is intended for the Chinese and CIS oil and gas markets. As part of the agreement, BHXM personnel received training and technical assistance from TMK-Premium Service specialists.

The TMK-FMC is a premium-class casing connection with extra gas tightness properties and high tension capacity used for the construction and operation of vertical and deviated oil, gas and condensate wells and especially designed for corrosive applications.

“TMK-Premium Service continues to actively develop proprietary technology while expanding its global presence. Although we already have licensing agreements with such companies as AK Korvet and Tyazhpressmash, this premium casing connection agreement with Beijing Huayou Xingye Materials Co. marks TMK’s first technology licensing outside Russia”, said TMK-Premium Service director Sergey Chetverikov.

Beijing Huayou Xingye Materials Co. is a daughter company of the Beijing Huayou Xingye Energy Investment Co Ltd (www.ccpoil.com).