NIOC signed the deal in a ceremony held on Wednesday in the presence of Iranian Minister of Petroleum Bijan Zangeneh, NIOC managing director Ali Kardor, the head of Tubacex board of directors and Managing Director Isfahan Steel Company Mohammad Ali Jan-Nesari.

The deal was signed for churning out 600 kilometers of corrosion resistant alloy (CRA) pipes ordered by Pars Oil and Gas Company. 

Based on the deal, the technical savvy for manufacturing alloy steel pipes, particularly CRA pipes, will be completely transferred to Iran and by fulfillment of this contract, Iran will be known as one of the main manufacturers of this strategic commodity in the world.

A strategic commodity, CRA pipes are currently being supplied by a limited number of companies in the world and were previously imported to the country.

Tubacex S.A. and Japan's JFE have committed by this contract to invest in fabrication of CRA pipes and transfer the technical know-how to Isfahan Steel Co. in a period of three years. 

The project will include production of high chromium and nickel bars, production of seamless pipes and threading of the pipes which require state-of-the-art technologies.

The technology is so advanced that even China cannot produce the pipes. After fulfillment of the deal, Iran will be fully able to produce the strategic item.  

In 1999, Iran made the same move to domestically manufacture gas turbines for consumption in its gas industry. Dubbed as the biggest step in self-sufficiency in the history of oil industry in Iran, the initiative protected the country against many of the issues that the sanctions could have caused against Iran.