In 2006, The Industrialization & Energy Services Company (TAQA) launched a subsidiary called Jubail Energy Services Company (JESCO), which will manufacture seamless pipes in Jubail 1 Industrial Area. Site work started on a primary industrial site with an area of 730,000 square meters, which was allocated to TAQA by the Royal Commission of Jubail and Yanbu. JESCO is owned 51% by TAQA and is a closed Saudi Joint Stock company with a paid-up capital of SR 750 million. JESCO will be the first producer of seamless pipes in the Gulf Cooperation Council (GCC), which accounts for approximately 45% of world oil reserves. The proposed plant will produce 500,000 tons per annum (tpa). Construction started in December 2006 and mechanical completion is set for December 2008 while commissioning, start-up and plant operations are anticipated to commence during the first quarter of 2009.The plant is designed to produce SP in sizes varying from 5 3/8 inch to 14 inch in diameter, with varying wall thicknesses and different steel compositions. Sophisticated heat treatment and pipe finishing facilities will enable the plant to meet requirements of oil and gas customers’ requirements with the built-in ability to test and certify its products in accordance with the latest international standards and specification