Vallourec has secured a two-year extension of its provide contract with the Abu Dhabi Nationwide Oil Firm (ADNOC).
The 2019 contract was initially price roughly $900 million. The extension will take impact in January 2025 and can last as long as January 2027, Vallourec stated in a information launch. The monetary particulars of the extension weren’t disclosed.
Vallourec stated it should proceed to produce the entire vary of tubes and connections for each standard and sophisticated functions in onshore and offshore oil and fuel fields. The corporate stated it should additionally present assist with its VAM Area Service on-site help providing.
Along with the extension, the contract has been amended to increase the preliminary contract scope of provide to additionally embody a brand new vary of providers, corresponding to native pipe coating in addition to Vallourec’s new digital options corresponding to Tallyvision, which streamlines set up operations by offering full traceability for every tube, in keeping with the discharge.
Below the extension, Vallourec additionally secured a brand new main order for the provision of 27,000 metric tons of tubes. The merchandise will likely be manufactured in Vallourec vegetation in France, Brazil, China and Indonesia, making the most of the corporate’s strategic premium manufacturing hubs, with deliveries beginning on the finish of the yr.
“The extension of our contract reveals our buyer’s belief and the added worth they’ve acquired from this built-in tubes and providers providing we’ve supplied for the previous 4 years as a reference provider,” Vallourec Chairman and CEO Philippe Guillemot stated. “Below this extension, we’re additional increasing our vary of providers. Our buyer has additionally acknowledged the worth and high quality of this enhanced providing with its vital new order. I’m happy with the excessive stage of our operations in Abu Dhabi and the unfailing dedication of our groups to our long-standing companion”.
Earlier within the week, Vallourec introduced that it finalized a deal to supply Equinor with tubes and connections for its Brazilian tasks. Vallourec stated in a separate information launch the five-year contract additionally covers equipment and providers.
The options will assist the event of the Bacalhau and Raia fields operated within the pre-salt, in addition to the Peregrino subject within the post-salt, Vallourec stated. The Bacalhau subject is located within the Santos Basin and is operated by Equinor (40 p.c), in partnership with ExxonMobil (40 p.c), Petrogal Brasil (20 p.c), and PPSA (a authorities firm). The Raia subject consists of three pre-salt discoveries: Pão de Açúcar, Gávea, and Seat. They include pure fuel and oil/condensate recoverable reserves of above one billion barrels of oil equal, in keeping with Equinor. The sphere is operated by Equinor (35 p.c), in partnership with Repsol Sinopec (35 p.c) and Petrobras (30 p.c).
The contract consists of revolutionary digital options and Vallourec’s Tubular Administration Companies to boost efficiencies in Equinor’s operations and cut back complete possession prices, Vallourec stated. Its manufacturing amenities in Barreiro and Jeceaba, together with its Vallourec Tubular Options built-in providers middle in Macae, will cater to Equinor’s necessities.
Vallourec supplies main tubular options for the power sector and different functions, from oil and fuel wells in excessive situations to the most recent technology of energy vegetation.
To contact the writer, e-mail rocky.teodoro@rigzone.com
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