Vallourec, world leader in premium tubular solutions, announced in a statement that it has signed a 10-year agreement with Saudi Aramco for the supply of Premium Casing and Services.
The associated orders will be manufactured and delivered by Vallourec’s plant in Saudi Arabia.
The agreement strengthens the existing relationship between the Group and the Saudi national company. This agreement will cover part of Saudi Aramco’s needs for Premium OCTG (Oil Country Tubular Goods) solutions for its drilling operations. It includes the supply of Premium Casing as well as Inventory Management services.
As part of the iktva (In-Kingdom Total Value Add) program launched by Saudi Aramco, Vallourec has submitted a comprehensive plan that makes a significant contribution to the development of local production in Saudi Arabia over the long term.
This contract is on a call-off basis, placed every quarter during the term of the agreement. The first two on-call orders have already been received, with delivery scheduled for early 2023. This agreement represents a key achievement for Vallourec in Saudi Arabia. It paves the way for a joint roadmap focused on innovation, services, and energy transition. It provides Vallourec Saudi Arabia with solid outlook for its presence in the region.
“This first Long-Term Agreement is a strong recognition by Saudi Aramco that Vallourec is a long-term strategic partner for the years to come. It is an important milestone in the long history of Vallourec with Saudi Aramco, paving the way for extended collaboration with clear opportunities to introduce our wide range of innovative solutions while enhancing our footprint in the Kingdom. I would like to thank Saudi Aramco for its confidence” said Philippe Guillemot, Chairman of the Board of Directors and Chief Executive Officer.
