TechnipFMC signs a major contract with Vallourec in Brazil for the supply of rigid pipelines

Vallourec Soluçoes Tubulares do Brasil was awarded by TechnipFMC in Brazil for supplying around 12.000 tons of rigid seamless steel tubes with external diameters of 8 "and 10" (INCHES) for the Mero 1 field, in the pre-salt

TechnipFMC and Vallourec sign a contract for the supply of pipes that will be used in the manufacture of the riser and flowline system for the interconnection of 13 wells (6 production wells and 7 alternate water injection wells), to be installed in the Mero pre-salt field 1, which is part of the giant Libra reservoir. Libra occupies an area of ​​1.550 square kilometers, equivalent to the size of the Brazilian city of São Paulo, with estimated recoverable reserves in the range of 8 to 12 billion barrels of oil.

The Libra Block was developed under a consortium agreement with Petrobras (40% stake) as operator, and Shell (20%), Total (20%), CNOOC Limited (10%), CNPC (10%) and Pré -Salt. Petroleum – PPSA (state-owned company, manager of the Consórcio Libra contract) as well as the other partners of the consortium.

The Mero field is located approximately 180 kilometers off the coast of Rio de Janeiro, in ultra-deep waters and has high quality carbonate reservoirs with expected high productivity.

“We are very proud to participate in this important oil development, strategic for Brazil and for Vallourec. The contract reflects the value of our integrated solution for rigid riser systems and flowlines for ultra-deep water fields. This contract confirms that the strategy implemented by Vallourec to provide customers with rigid piping solutions is appropriate. We understand that the market has reached an inflection point where demand for rigid risers will increase. At these depths and distance from shore, the rigid line offers the most sustainable solution for the lifetime of these projects,” said Alexandre Lyra, Senior Vice President South America at Vallourec.

The supply of tubes from Vallourec will start at the end of 2019.

Brazil is one of Vallourec's main markets and one of its main production and export hubs. Activities in Brazil comprise two main industrial areas:

• Steel tube manufacturing, rolling and finishing facilities.
• Two highly specialized service companies for the O&G market
• An iron ore mine and eucalyptus plantations.

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