Construction & Real Estate

Vallourec wins two-year extension for $900m Adnoc contract

Vallourec, a leading provider of tubular solutions for the energy sector, has announced that it has won a two-year extension from Abu Dhabi National Oil Company (Adnoc) for one of its key projects. The supply contract, originally worth $900 million, will take effect in January 2025.
As per the deal, Vallourec will continue to supply the complete range of tubes and connections for both conventional and complex applications in Adnoc's onshore and offshore oil and gas fields. 
Announcing the big win, Vallourec said in addition to the extension, the contract has been amended to expand the initial contract scope of supply to also include a new range of services, such as local pipe coating as well as the French group’s new digital solutions such as Tallyvision, which
streamlines installation operations by providing full traceability for each tube.
The customer will also continue to benefit from Vallourec’s state-of-the-art yard (operational storage area), equipped with a 100% digital management system, it added. 
Under this extension, Vallourec said it has also secured a major new order for the supply of 27,000 tonnes of tubes. 
Besides its plants in France, these products will be manufactured at Vallourec facilities in Brazil, China and Indonesia, thus taking advantage of the group’s strategic premium production hubs. Deliveries will start at the end of 2024, it added.
Philippe Guillemot, Chairman of the Board of Directors and CEO, said: "The extension of our contract shows 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."
Vallourec, he stated, will also be supporting its customers with its VAM Field Service on-site assistance offering.
"Under this extension, we are further expanding our range of services. Our customer has also recognized the value and quality of this enhanced offering with its significant new order. I am proud of the high level of our operations in Abu Dhabi and the unfailing commitment of our teams to our long-standing partner," he added.-TradeArabia News Service