The price of a CS pipe cannot be “like for like” compared with the price of a metallurgically CRA clad pipe of same diameter because the manufacturing process is completely different and the incidence of the cost of the CRA plates is predominant over the CS part.In the cost of the raw materials of a CRA clad pipe, the majority of the material costs are due to the inconel alloy, which is not part of a normal CS pipe.
Regarding a benchmark of the CRA clad pipes, the Partners opted in August to use the Enterprise Framework Agreements in place between Shell and these two contractors, deciding therefore to use the already negotiated terms and conditions, including the prices. According to the information requested to and provided by Shell, the prices of the pipes in the two subject contracts, apart for acceleration charges and other ancillary services like testing, are substantially aligned with the Enterprise Framework Agreement.