Shell hands out more work to Vallourec for subsea oil & gas project

January 12, 2026, by Melisa Cavcic

French provider of tubular solutions Vallourec has secured a new deal with the UK-headquartered energy giant Shell for the supply of oil country tubular goods (OCTG) products and services for offshore operations related to the development of a giant deepwater project off the coast of Brazil.

Vallourec lands 'large' Qatar deal weeks after acquiring Brazillian pipe coating firm — Illustration; Source: Vallourec

Months after being hired by TechnipFMC for the supply of line pipes for the Orca project, formerly known as Gato do Mato, offshore Brazil, Vallourec announced another significant contract for the supply of OCTG products and services with Shell for the same project, following a competitive bidding process.

The expected drilling date is April 2027, and the current drilling plan includes ten wells, with an estimation of 12,000 to 15,000 tons of pipes. This contract encompasses the full OCTG scope, including seamless pipes and VAM premium connections for the operator’s offshore wells ranging from 4.5” to 18”, with both carbon and stainless-steel tubulars and associated accessories.

The French player will also provide comprehensive value-added services onshore and offshore, covering desk engineering, material coordination, rig preparation, offshore supervision, and rig return repairs, to support Shell in optimizing operational efficiency.

Philippe Guillemot, Chairman of the Board of Directors and Chief Executive Officer of Vallourec Group, commented: “After recently winning an order to supply line pipes on this key offshore project, this new contract demonstrates Vallourec’s ability to support its customers across the entire value chain.

“It confirms the value of VAM premium connections in Brazil and the expertise of Vallourec Tubular Services (VTS) in providing an extensive suite of services to complement our offer in premium seamless pipes.”

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The Orca pre-salt gas-condensate discovery spans two contiguous blocks: BM-S-54, a concession contract Shell entered into in 2005, and Sul de Gato do Mato, a production sharing agreement obtained in 2017. MODEC is in charge of constructing a floating production, storage, and offloading (FPSO) unit for the project.

TechnipFMC is handling the integrated engineering, procurement, construction, and installation (iEPCI) scope for the project, thanks to a deal worth over $1 billion. Designed to produce up to 120,000 barrels of oil per day (boepd), this development is expected to start production in 2029.