Paris (awp / afp) – The French group Vallourec announced on Tuesday that it had signed an agreement with the Saudi oil giant Aramco to supply it with tubes for ten years on the basis of quarterly orders delivered by its factory located in the kingdom.
No amount has been communicated, but the group specifies in a press release that two orders have already been placed with delivery scheduled for early 2023.
This agreement “will cover part of Saudi Aramco’s requirements for premium seamless steel tubes (OCTG) for its drilling activities” and “includes the supply of premium casing tubes as well as inventory management services”, specifies the company. French company.
Vallourec welcomes this “significant success” which strengthens its relations with the world’s leading exporter of crude oil and “opens the way to a common roadmap focused on innovation, services and energy transition”.
“With this first long-term agreement, Saudi Aramco distinguishes Vallourec as a strategic partner for the years to come,” said Philippe Guillemot, Chairman of the Board and CEO of Vallourec, quoted in the press release.
The group had inaugurated in 2014 an oil and gas pipe finishing plant in Saudi Arabia, resulting from the acquisition in 2011 of Saudi Seamless Pipes Factory Company Limited, a total investment of approximately 200 million dollars mainly intended to supply Saudi Aramco and other energy companies in the region.
In the second quarter, the French manufacturer recorded a net loss of 415 million euros mainly due to provisions related to its social plan. Turnover followed an opposite curve, with an increase of 35.9% between April and June, to 1.14 billion euros.
Vallourec benefited in particular from strong growth in its Oil & Gas division, up 63.2% over the quarter, at 781 million euros, linked to both the rise in prices and volumes in North America, as well as than that of volumes in Europe, Middle East and Africa.
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