Brazilian state-run oil company Petrobras has commissioned steel tubes maker Vallourec for the supply of its offshore operations through 2029, the steel tubes maker announced on Thursday.
The order, which includes the supply of carbon and stainless steel pipes and associated services, could generate revenues of up to $1 billion, the group said. It will cover the needs of Petrobras' offshore operations from 2026 to 2029.
Vallourec CEO Philippe Guillemot said the contract illustrated the success of its investment plan in Brazil. That has enabled it to produce locally tubes that previously would have to be imported.
Vallourec has in the past two years reduced output volumes and focused on high value-added products as part of a plan to reduce its debt, he added.
In September last year, Vallourec had signed a three-year contract with Petrobras for the supply of up to up to 25,000 tonnes of steel pipes and accessories for the development of the Sepia 2 and Atapu 2 projects.
(Reporting by Alban Kacher and Mathias de Rozario; Editing by Matt Scuffham)
