Vallourec’s Continued Success in North Africa
On April 8, 2025, Vallourec, a global leader in premium seamless tubular solutions, received a Notice of Award from SONATRACH, Algeria’s national oil and gas company. The award marks a major milestone for Vallourec, reinforcing its leadership position in the North African oil and gas market. The contract involves the supply of Oil Country Tubular Goods, specifically carbon steel OCTG threaded with Vallourec’s premium VAM® connections, a standard widely recognized and trusted in the region.
The Significance of the OCTG Contract
This award is a testament to Vallourec’s expertise in providing advanced technical solutions and its proven track record of delivering high-quality products to SONATRACH. As one of the largest and most influential oil and gas companies in Algeria, SONATRACH’s confidence in Vallourec’s VAM® connections underscores the value Vallourec continues to bring to its customers, especially in critical drilling operations.
Vallourec’s OCTG solutions will be used for oil and gas exploration and drilling operations in Algeria, a key market for premium tubular solutions. The delivery of these products is expected to generate more than $250 million in revenues for Vallourec, reflecting the scale and significance of the project.
The Importance of VAM® Connections
At the heart of this agreement is Vallourec’s VAM® premium connection technology, which has become the industry standard in North Africa for oil and gas drilling operations. The VAM® connection ensures superior performance, high reliability, and resistance to challenging conditions such as high pressure, high temperatures, and corrosive environments. This is particularly crucial in the Algerian oil and gas fields, where drilling operations face extreme conditions.
The VAM® connections have been proven over years of successful field performance, which is why they remain the preferred choice for SONATRACH. The reliability of Vallourec’s OCTG solutions, coupled with the company’s strong operational performance in the region, contributed to the renewal of this significant partnership.
Global Production Footprint Ensures High-Quality Standards
Vallourec’s global industrial footprint played a key role in securing this contract. The OCTG products will be manufactured across Vallourec’s plants in Brazil, China, France, and Indonesia, ensuring a flexible supply chain and the highest quality standards. This global manufacturing network allows Vallourec to meet SONATRACH’s specific requirements while ensuring consistent supply and timely delivery, critical factors in the oil and gas industry.
The flexibility in production ensures Vallourec’s ability to meet high-volume demands and deliver premium quality products to SONATRACH, further solidifying its competitive edge in the market.
Strategic Importance of the Contract for Vallourec
This new contract cements Vallourec’s leadership in the North African market and further enhances its reputation as a trusted supplier to major oil and gas companies worldwide. North Africa, with its rich energy resources, is a key region for Vallourec, and this contract marks a further extension of its influence and market share.
Laurent Dubedout, Senior Vice President of OCTG, Services and Accessories at Vallourec, highlighted the strategic value of this award, stating, “This notice of award further establishes Vallourec’s leadership in North Africa, a key region for our premium OCTG solutions.” His comments reflect the company’s ongoing commitment to supporting customers like SONATRACH in optimizing drilling operations while maintaining the highest standards of quality and reliability.
Deliveries Expected in 2025 and 2026
The deliveries under this contract will take place in 2025 and 2026, providing Vallourec with a stable and sustained revenue stream. The revenue generated from this operation is expected to be greater than $250 million, a substantial contribution to the company’s overall financial performance.
Given the strategic importance of Algeria as a leading oil and gas producer, this contract with SONATRACH also reinforces Vallourec’s long-term position in the global energy market.
Key Takeaways:
• Vallourec has received a Notice of Award from SONATRACH, Algeria’s national oil and gas company, to supply Oil Country Tubular Goods (OCTG).
• The contract includes the supply of carbon steel OCTG threaded with Vallourec’s VAM® premium connections, a trusted standard in the region.
• The total value of the operation is expected to exceed $250 million, with deliveries scheduled for 2025 and 2026.
• Vallourec’s global production network in Brazil, China, France, and Indonesia ensures the flexibility and high quality required by SONATRACH.
• The renewal of this partnership underscores Vallourec’s leadership in North Africa and its ability to meet SONATRACH’s drilling needs with premium, reliable solutions.
• VAM® connections have been proven through years of successful field performance, further strengthening their position as the industry standard for challenging drilling conditions.
• The contract highlights Vallourec’s strong operational performance and global industrial footprint, ensuring the consistent supply and quality of products.
Vallourec’s success in securing this OCTG contract further solidifies its role as a global leader in premium tubular solutions, providing long-term value to SONATRACH and contributing to Algeria’s energy sector.
