Vallourec Strengthens Position in OCTG Market with Sonatrach
Vallourec's Major Leap in OCTG Supply with Sonatrach
Vallourec, a recognized leader in premium seamless tubular solutions, has taken a significant step forward in the Oil Country Tubular Goods (OCTG) market. A recent notice of award from SONATRACH marks a strategic partnership that not only cements Vallourec's presence in Algeria but also enhances its overall operational capabilities across the region.
The Details of the Award
Vallourec has been confirmed to supply a substantial amount of carbon steel OCTG threaded with its well-regarded VAM connections. These connections are celebrated as the benchmark for reliability and performance in the Algerian market. Expected deliveries span across 2025 and 2026, with projections indicating that this operation is likely to generate over $250 million in revenue for Vallourec. This substantial financial threshold emphasizes the importance of this renewed collaboration.
Global Production Strategy
The manufacturing process will take place in Vallourec's advanced facilities located in Brazil, China, France, and Indonesia. This extensive global footprint enables Vallourec to maintain stringent quality standards while ensuring a flexible supply chain capable of meeting SONATRACH's diverse requirements. The company’s comprehensive approach to production signifies its commitment to delivering exceptional quality and innovation in its products.
Leadership Statement
Laurent Dubedout, Senior Vice President OCTG, Services and Accessories, expressed enthusiasm regarding this partnership, stating, "This notice of award further strengthens Vallourec’s leadership position in North Africa, a crucial market for our premium OCTG solutions. SONATRACH's persistent trust in VAM connections, accrued through years of effective field performance, showcases the substantial value we offer for its projects. Our global industrial footprint allows us to continue assisting our customer in optimizing their drilling operations while adhering to the highest standards of quality and reliability."
A Glance at Vallourec
Vallourec is at the forefront of providing premium tubular solutions across various sectors, specifically targeting the energy markets along with challenging industrial applications. This includes working in difficult environments such as oil and gas wells, cutting-edge power plants, intricate architectural designs, and top-tier mechanical systems. The company's innovative spirit drives its research and development, pushing forward technological boundaries. With a dedicated workforce of around 13,000 employees spread across more than 20 countries, Vallourec stands out not just as a manufacturer of tubes, but as a provider of innovative, secure, and competitive tubular solutions, helping to make diverse projects achievable.
Stock Market Presence
Vallourec is publicly traded on Euronext Paris under the ISIN code: FR0013506730, with the ticker symbol VK. The company is included in key French stock indices such as the CAC Mid 60, SBF 120, and Next 150, making it a significant player in the market.
American Depositary Receipt Program
Vallourec has also facilitated access for U.S. investors through its sponsored Level 1 American Depositary Receipt (ADR) program, allowing for easier investment opportunities on the international front. The ADR is under ISIN code: US92023R4074, with a parity set at 5:1 in relation to Vallourec's ordinary shares.
Contact Information for Further Inquiries
For those seeking more information, Vallourec offers various points of contact.
Investor Relations:
Connor Lynagh
Phone: +1 (713) 409-7842
Email: connor.lynagh@vallourec.com
Individual Shareholders:
Toll-Free Number: 0 805 65 10 10 (From France)
Email: actionnaires@vallourec.com
Press Relations:
Romain Grière
Phone: +33 (0)7 86 53 17 29
Email: romain.griere@taddeo.fr
Nicolas Escoulan
Phone: +33 (0)6 42 19 14 74
Email: nicolas.escoulan@taddeo.fr
Frequently Asked Questions
What is Vallourec's recent award for?
Vallourec has received a notice of award to supply OCTG to SONATRACH, Algeria's National Oil and Gas Company.
What are VAM connections?
VAM connections are premium threaded connections known for their reliability in demanding environments.
How much revenue is expected from this operation?
The operation is expected to generate over $250 million for Vallourec.
Where are Vallourec's plants located?
Vallourec manufactures its products in Brazil, China, France, and Indonesia.
Is Vallourec publicly traded?
Yes, Vallourec is listed on Euronext Paris with the ticker symbol VK.
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