Ramco Energy PLC - Statement re Joint Venture

RNS No 7588x
RAMCO ENERGY PLC
10 August 1999

BRITISH STEEL RAMCO PIPELINE SERVICES LIMITED (BSR) TO COAT LINEPIPE FOR
TRANSCO AND FURTHER ITS COMPETITIVE ADVANTAGE THROUGH PLANT UPGRADE 

British Steel Ramco Pipeline Services Limited (BSR), the 50/50 pipeline
coating joint venture between Ramco and British Steel, is to upgrade its
internal and external pipe coating facilities at Hartlepool.  The plant
upgrade follows the award of a #2.5m two year contract for coating linepipe,
which forms part of a #19 million overall linepipe supply contract between
Transco and Tubular Supply Services Limited (TSSL), a subsidiary of British
Steel.  It will enable BSR to extend its coating size range from the current
maximum diameter of 26 inch pipe to 48 inch pipe. 

The pipe will be manufactured at British Steel's 42 inch pipe mill at
Hartlepool and coated by BSR at its upgraded facility.  The Transco contract
with TSSL allows for BSR to coat in excess of 100 km of 30 inch to 42 inch
linepipe.  Transco has started a major ten year investment programme, with
British Steel providing pipe for the next two years.  The BSR venture's
competitive advantage is its location at the steel mill and close proximity to
Hartlepool Docks.  Pipe is very expensive to move, and the ability to coat at
the mill provides substantial transportation and logistical advantages to the
customer. 

To date, the pipe coating facilities at the Hartlepool site have consisted of
two separate coating lines, both with a size range of 3 inch to 26 inch.  The
upgrade will integrate the internal and external coating lines and expand
operational capabilities to a maximum size of 48".  The upgrade will involve
the relocation of the existing plant and equipment and the addition of plant
to be supplied from Holland. 

BSR is confident that the upgrade of its facilities will lead to additional
market opportunities in Three Layer Polymer and Fusion Bonded Epoxy coating
for offshore projects and overseas onshore gas mains.

Enquiries:

Lisa J Newman
Public Relations Manager    Tel: [phone]
Ramco Energy plc            E/Mail: [e-mail] 
 
John Harwood                Tel: [phone]
Plant Manager
BSR

Additional information on Ramco Energy plc can also be found on the Company
website at www.ramco-plc.com.


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