Localizing seamless pipes manufacturing in the Middle East – in general, and in Saudi Arabia – in particular, was a commercial necessity and a strategic decision. Middle East and North Africa (MENA) is currently the most growing region related to Oil and Gas industry. GCC is having a strong demand for seamless pipes and various projects will sustain and even increase such demand in future. This regional development would benefit from a local supply of seamless pipes now that JESCO comes on stream.
JESCO will benefit from its ideal location to deliver to GCC National & International Oil and Gas Companies, shortening their Supply Chain with thousand of miles and hundreds of days.
In 2006, Industrialization and Energy Services Company (TAQA) decided to complement its developed business related to oil and gas industry with its new subsidiary called Jubail Energy Services Company (JESCO), for the manufacture of seamless pipes in Jubail 1 Industrial Area. The integration of seamless pipes manufacturing with its already equipped services to the oil and gas industry will provide better synergies and opportunities for Taqa as a group. From the exploration, drilling and marine facilities for the oil and gas sector to seamless pipes manufacturing, Taqa is an important contributor to the oil and gas industry upstream development.
The company is owned 51% by TAQA, 10% by Duferco Saudi Ltd, and the balance of shares is made up by other, prominent Saudi investors. Saudi Industrial Development Fund (SIDF), Public Investment Fund (PIF) and HSBC/SABB contributed to project financing.
In 2011 JESCO - when at full production capacity - will produce 400,000 metrictons per year of seamless steel pipes, and will reach a number of 700 employees.