Strategic Partnership Bolsters Kuwait'sProduction Expansion
Vallourec, a world leader in premium seamless tubularsolutions based in Meudon, France, has strengthened its position in the MiddleEast energy sector by securing a significant contract with Kuwait Oil Company.The agreement, announced on April 28, 2025, encompasses the supply of carbonsteel OCTG products with premium connections and proprietary steel grades to bedelivered throughout 2025 and 2026. This contract represents a potentialrevenue exceeding $130 million and comes at a pivotal moment as Kuwaitimplements its strategic plan to boost oil production capacity to 4 millionbarrels per day by 2035. The contract follows KOC's tender issuance inSeptember 2024 specifically targeting deep drilling applications, indicatingKuwait's commitment to expanding its production capabilities despite globalenergy transition pressures.
Technical Excellence Secures Competitive Edge
In a highly competitive global market for oil fieldequipment, Vallourec distinguished itself by securing the most technicallydemanding portion of the tender. The company will supply advanced carbon steelOCTG products featuring premium connections and specialized steel gradesdeveloped specifically for Kuwait's challenging drilling environments. Thecontract notably includes some of Vallourec's high-torque flush premiumconnections, sophisticated joining technology designed to maintain structuralintegrity under extreme drilling conditions. This technical differentiationproved decisive in the selection process, demonstrating how specializedengineering capabilities continue to provide competitive advantages even inprice-sensitive markets. The company's ability to deliver both technicalperformance and cost efficiency highlights the continuing importance ofinnovation in traditional energy sectors. [1]
Historical Relationship Underpins New Agreement
Vallourec's success in securing this contract builds upon along-established presence in Kuwait, where the company has developed areputation as a reliable supplier to KOC. Over years of collaboration,Vallourec has developed specific products tailored to both offshore and onshoreprojects in Kuwait, creating a deep understanding of the unique geological andoperational challenges faced by KOC. This historical relationship has fosteredtrust and technical familiarity that provided Vallourec with advantages duringthe competitive bidding process. The continuation of this partnership reflectsthe value of long-term business relationships in the energy sector, wherereliability and proven performance often outweigh short-term costconsiderations when selecting critical infrastructure suppliers.
Manufacturing Capacity Meets Demanding Schedule
The substantial volume of this contract will leverageVallourec's global manufacturing network, demonstrating the company's abilityto reliably produce and deliver significant quantities of premium tubes andconnections within tight timeframes. Philippe Guillemot, Vallourec's Chairmanand CEO, emphasized this capability in his statement: "This new orderdemonstrates our competitiveness and ability to reliably manufacture anddeliver significant quantities of premium tubes and connections." Thedelivery schedule spanning 2025-2026 will require precise coordination acrossVallourec's production facilities to ensure timely fulfillment of KOC'soperational needs. This manufacturing reliability represents a core competitiveadvantage in an industry where project delays can result in substantialfinancial consequences.
Key Takeaways:
• Vallourec has secured a major contract exceeding $130million to supply premium OCTG products to Kuwait Oil Company, featuringspecialized steel grades and high-torque flush premium connections for deepdrilling applications.
The agreement supports Kuwait's strategic plan to increaseoil production capacity to 4 million barrels per day by 2035, with deliveriesscheduled throughout 2025 and 2026.
• Vallourec's historical presence in Kuwait and developmentof specific products for KOC's offshore and onshore projects providedcompetitive advantages in securing the technically demanding portion of thetender.
