France’s tubular solutions provider Vallourec has signed what is described to be a “significant” contract with Brazil’s state-owned energy giant Petrobras for the supply of oil country tubular goods (OCTG) and accessories for the development of Sepia 2 and Atapu 2 projects in the Santos Basin offshore Brazil.
According to Vallolurec, the deal includes the delivery of high-end steel grades such as High Collapse, Sour Service, and Super Martensitic, and premium connections, such as VAM 21, and VAM SLIJ-3, designed to handle the technical challenges of Brazil’s deepwater pre-salt fields.
Vallourec will also provide tubular management services, VAM field service, and digital solutions from its Brazilian facilities. All products will be supplied from the company’s Brazilian plants, including large-diameter seamless tubes, for which production capabilities have been bolstered by recent investments, said Vallourec. The contract covers deliveries of up to 25,000 tons over three years.
“This contract is a clear endorsement of Vallourec’s unique positioning in one of the world’s most important oil producing regions. It demonstrates the Company’s commitment to the Brazilian market and its ability to deliver high value tubular solutions and services directly from its Brazilian facilities.” said Philippe Guillemot , Chairman of the Board of Directors, and Chief Executive Officer.
“This is a tangible result of the New Vallourec strategic plan, which has strengthened the Company’s position in key markets to better serve its customers. The Company is proud to be partnering with Petrobras on this important project.”
The Atapu field has been producing since 2020 through the FPSO P-70, with a production capacity of 150,000 barrels of oil per day (bopd), the second development phase, Atapu-2, will comprise a newly built FPSO P-84 of 225,000 bopd capacity.
The Sépia field has been producing since 2021 through the FPSO Carioca, with a production capacity of 180,000 bopd. However, the Sépia-2 will bring a newbuilt FPSO P-85 of 225,000 bopd capacity into play. Petrobras holds a 55.3% stake in Sépia in partnership with TotalEnergies (16.9%), Petronas (12.7%), QatarEnergy (12.7%), and Petrogal Brasil (2.4%).
Petrobras hired the tubular solutions provider in June to supply tubes and services for offshore development wells, mostly located in the Campos pre-salt basin. The French company underlined that this agreement also encompasses a wide range of services, such as stock management, rig preparation, and transportation.
The Campos pre-salt basin work in Brazil arrived almost a year after Valloirec was selected to supply line pipes for phases 6 and 8 of the Búzios oil field and less than two months after securing a deepwater oil project contract with ExxonMobil off the coast of Guyana.