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Vallourec signs new contracts with Petrobas

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World Pipelines,

Vallourec, world leader in premium tubular solutions, yesterday announced it has signed new contracts for the supply of products and services to the Brazilian national oil company Petrobras.

In the framework of these three years Long Term Agreements, Vallourec will supply Petrobras' operations with premium seamless OCTG products and associated accessories, with premium steel grades and connections using state-of-the art technology, and specialised services.

The products and associated services will be used by Petrobras on its offshore oil and gas exploration and production wells, located at the important reservoirs of the pre-salt basin. The Petrobras production coming out from pre-salt area already represents more than 50% of Petrobras’ total production.

With these contracts, Vallourec consolidates its worldwide leadership in the supply of premium OCTG products for the oil and gas industry. Philippe Crouzet, Chairman of Vallourec's Management Board, declared: "Petrobras is one of the most productive oil companies in the world and operates in pre-salt areas where the potential is huge. We are proud to have taken up the challenge once again, to answer the technological challenges of Petrobras. We are pleased to pursue our collaboration with this historical partner. We have been bold in supporting it with the best of our innovation and by proposing new services."

Huge technical challenges ahead

The Brazilian pre-salt fields combine several challenges besides the salt layer itself: well depths up to 7000 m, ultra-deepwater conditions with up to 2000 m between surface and seabed, acid corrosion caused by H2S and CO2 contaminants, temperatures and pressures tending toward high pressure/high temperature conditions in certain areas. Associating all these parameters together has an important impact on the exploration models, and on the requirements for OCTG products able to withstand such a combination of mechanical, corrosive and thermal constraints.

Vallourec, through its sustained innovation capability, is able to meet all these technological needs and will supply Petrobras with the most advanced seamless pipes for sour service using high alloyed material as well as the latest and unequalled advanced premium connections. Further on, specialised technical services have been developed over the last years in order to answer to new needs from our customer.

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