French provider of tubular solutions Vallourec has signed a long-term agreement with Brazilian oil & gas giant Petrobras for the supply of oil country tubular goods (OCTG) that could generate total revenue of up to $1 billion.
Following a competitive bidding process, Vallourec has been selected to supply OCTG products and services for Petrobras’ offshore operations from 2026 to 2029, with the agreement representing the widest award both in volumes and revenues since the Brazilian major adopted the open tender strategy.
The contract covers the full OCTG scope of supply for seamless pipes and VAM premium connections required for offshore wells from 4.5” up to 18”, including carbon and stainless-steel tubulars and associated accessories.
Vallourec said it would also deliver comprehensive value-add services both onshore and offshore, from desk engineering and material coordination to rig preparation, offshore supervision, rig return repairs, and re-stocking, to support Petrobras in optimizing operational efficiency.
“This achievement is a powerful demonstration of Vallourec’s ability to meet customers’ complex and evolving requirements. It confirms the strength and consistency of our positioning, built on technical excellence, an integrated industrial presence in Brazil, and a long-standing partnership with Petrobras based on mutual trust,” said Philippe Guillemot , Chairman of the Board of Directors and CEO of the Vallourec Group.
This time last year, the two companies signed a “significant” contract for the supply of OCTG and accessories for the development of Sepia 2 and Atapu 2 projects in the Santos Basin offshore Brazil.
This July, Vallourec secured a number of new contracts under which it is set to deliver OCTG to the UAE’s Abu Dhabi National Oil Company (ADNOC), as well as CNOOC and PetroChina in Iraq.