Vallourec secures $900m extended contract in Abu Dhabi for tubes and connections
Vallourec, a prominent global provider of tubular solutions, has secured a significant extension with the National Oil Company of Abu Dhabi. This extension, which continues a relationship established in 2019, is valued at approximately 900 million USD. Set to commence in January 2025 and conclude in January 2027, the deal underscores Vallourec’s strategic importance in the oil and gas sector.
The contract extension not only continues the supply of a comprehensive range of tubes and connections for both conventional and complex onshore and offshore applications but also expands to include additional services. New to the agreement are local pipe coating services and advanced digital solutions like Tallyvision—a technology enhancing installation operations through complete traceability of each tube.
Vallourec will utilize its advanced operational storage areas, which are equipped with 100% digital management systems, to support the contract. Additionally, the company has confirmed a major new order under this extension, entailing the manufacture and delivery of 27,000 tonnes of tubes from its plants in France, Brazil, China, and Indonesia, starting at the end of 2024.
Philippe Guillemot, Chairman of the Board of Directors and Chief Executive Officer of Vallourec, expressed pride in the trust and recognition from the National Oil Company of Abu Dhabi. “The extension of our contract demonstrates our customer’s trust and the added value they have received from this integrated tubes and services offering we have provided for the past four years as a reference supplier,” said Guillemot. He also highlighted the expansion in service range and the significant new order as a testament to the quality and value of Vallourec’s offerings.
The extension and expansion of Vallourec’s contract signify not only a continuation of a fruitful partnership but also an adaptation to the evolving needs of the oil and gas industry. By incorporating advanced digital solutions and expanding its service offerings, Vallourec is positioning itself as a pivotal player in the sector’s push towards more efficient and technologically advanced operations.