Saudi Steel Pipe Company (Saudi Pipes) signed a contract with Saudi Aramco on October 13, 2026, to supply steel pipes for oil and gas.
Saudi Steel Pipe Company signed a contract with Saudi Aramco on October 13, 2026, to supply oil and gas steel pipes.
The agreement, disclosed via Tadawul, is structured as a purchase order rather than a long-term strategic agreement. It lasts up to 12 months. Saudi Pipes confirmed no board members or major shareholders have a direct or indirect interest in the deal.
Aramco Issues Five Orders Since March
Saudi Pipes has secured five separate purchase orders from Aramco since late March 2026. The October 13 contract is the latest in this sequence.
Saudi Steel Pipe wins a contract by Saudi Aramco to supply steel pipes for oil and gas applications, at an estimated value of SAR 177 million. The contract spans 12 months, and its financial impact is set to reflect on the company's financial results during H2 2027show more:… pic.twitter.com/A1Qla5nohI
- September 28, 2026: a deal for 12 months
Aramco Dominates Revenue Stream
The company relies heavily on a single customer—the world’s largest oil producer—tying its financial health to Aramco’s pipeline spending. This pattern ensures a steady stream of orders but limits customer diversification.
Revenue from these wins will be distributed across 2027. The March contract is expected to reflect in the first half of 2027, while the May and July deals will impact the first half and second quarter of 2027, respectively.
The most recent September and October contracts will influence results in the second half of 2027.
Saudi Pipes Expands Production
Founded in 1980, Saudi Pipes operates out of the Second Industrial City in Dammam and maintains a commercial office in Riyadh. Its product line includes API standard oil and gas pipes, line pipes, and galvanized and black pipes, as well as threading and coating services.
Production grew through a large-diameter pipe plant added in 2000, capacity increases across multiple plants in 2014, and a medium-diameter pipe plant launched in 2018. Tenaris acquired 47.79 percent of the company’s shares in 2019, leading to the name Tenaris Saudi Pipes. The company’s distribution network now reaches more than 20 countries.