Nippon Steel Corporation and Sumitomo Corporation have announced the renewal of a significant long-term contract with Norwegian energy giant Aker BP ASA for the supply of Oil Country Tubular Goods (OCTG) through 2034.
This strategic partnership reinforces the commitment of all parties to ensure stable energy supplies and advance sustainable practices in the oil and gas industry.
Aker BP, established in 2016, has rapidly grown to become one of Europe’s largest independent energy companies, specialising in oil and gas exploration and production on the Norwegian continental shelf.
Since Aker BP’s inception, Nippon Steel has been a key supplier of OCTG for their oil and gas development projects, with Sumitomo Corporation managing the procurement and supply chain.
The renewal of this contract is a testament to the high-performance OCTG and tailored product solutions provided by Nippon Steel and Sumitomo Corporation.
Their ability to deliver comprehensive supply chain management solutions has been crucial in maintaining a stable and reliable supply, earning them high praise from Aker BP.
This renewed partnership extends beyond the supply of OCTG.
Nippon Steel and Sumitomo Corporation are set to expand their collaboration with Aker BP and its group companies, exploring opportunities in emerging sectors such as:
- Decarbonisation initiatives
- Hydrogen and ammonia business
- Digital transformation (DX) projects
By leveraging their combined expertise and resources, the companies aim to drive innovation and sustainable growth in these critical areas.
Shingo Ueno, Representative Director, President, and Chief Executive Officer of Sumitomo Corporation, emphasised the significance of this partnership in addressing global challenges: “This renewed agreement not only secures a stable supply chain for the energy sector but also sets the stage for joint initiatives that will contribute to a more sustainable future.”
The collaboration between Nippon Steel, Sumitomo Corporation, and Aker BP comes at a crucial time when the energy industry faces increasing geopolitical risks.
Through their stable supply of OCTG, these companies are working together to enhance energy security while simultaneously pushing towards the realisation of a decarbonised society.
As the global energy landscape continues to evolve, this strategic partnership demonstrates a commitment to balancing current energy needs with future sustainability goals.
The renewed contract not only ensures a reliable supply of essential materials for oil and gas development but also paves the way for advancements in clean energy technologies and practices.
