Vallourec has secured a significant contract to supply Oil Country Tubular Goods (OCTG) to Sonatrach, Algeria’s national oil and gas company.
The agreement will see Vallourec deliver carbon steel OCTG threaded with its premium VAM connections, recognised as a standard in the Algerian market.
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Deliveries are scheduled for 2025 and 2026, with expected revenues exceeding $250m (€229.02m) for Vallourec.
The renewed partnership with Sonatrach highlights Vallourec’s technical solutions and operational performance in the region.
The OCTG solutions will be manufactured across Vallourec’s plants in Brazil, China, France and Indonesia.
This global production footprint is designed to ensure high-quality standards and a flexible supply chain to meet Sonatrach’s requirements.
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By GlobalDataOCTG Services and Accessories senior vice-president Laurent Dubedout said: “This notice of award further establishes Vallourec’s leadership in North Africa, a key region for our premium OCTG solutions. SONATRACH’S continued confidence in VAM connections, based on years of successful field performance, highlights the value we bring to its projects.
“Thanks to our global industrial footprint, we continue to support our customer in optimising their drilling operations while maintaining the highest standards of quality and reliability.”
In a related development, Vallourec secured a contract in July last year from TotalEnergies for the Kaminho deep-water project in Angola.
The contract involves supplying nearly 5,000 tonnes of OCTG solutions and associated services for the project, located 100km off Angola’s coast in Block 20.
Additionally, Sonatrach awarded a $2.3bn (AD309.26bn) engineering, procurement and construction contract to a consortium for gas-boosting work on a key field in Algeria in May last year.
The consortium, comprising Baker Hughes and Tecnimont, will work on the Hassi R’Mel gas field, 550km south of Algiers.
This field is crucial to Algeria’s energy system and serves as an essential energy source for Europe.
The project scope includes constructing three new gas boosting stations with turbo compressors and upgrading more than 300km of existing gas-gathering flowlines.
