Vallourec lands largest single OCTG contract from ADNOC

Vallourec, a French provider of tubular solutions serving the energy market, has signed a contract with the Abu Dhabi National Oil Company (ADNOC) to supply OCTG during the 2016-2018 period ​to its three operating companies, ADMA-OPCO, ADCO, and ZADCO. 

Vallourec noted that this was the first time that a tender has been organized to supply all three operating companies, and represents the largest single Oil Country Tubular Goods (OCTG) contract (close to 100,000 tons) that Vallourec has received to supply the Emirate of Abu Dhabi.

Vallourec will supply a full range of standard API and OCTG for both onshore and offshore oilfields, for applications ranging from conventional to complex wells. Included in the contract is the supply of high torque VAM connections for extended reach drilling and corrosion resistant alloy steels for sour service. Field running supervision and inspection will be provided by the Vallourec experts, the company added.

Didier Hornet, Senior Vice President, Eastern Hemisphere said, “Thanks to our worldwide presence, we are able to offer ADNOC a full range of products, from premium to API, from all of our mills, with competitive lead times and competitive prices. Together with VAM Field Services, we are able to support ADNOC with value added solutions from the mill to the rig.”

OCTG will be supplied from Vallourec’s mills in France, Germany, Brazil and China.

In addition, Vallourec reached an agreement for an additional revolving credit facility for an amount of €450 million ($509.7M), maturing in February 2020. This facility is subject to a covenant to maintain a gearing ratio of a maximum of 75%, similar to Vallourec’s other bank facilities.

This agreement was reached with a syndicate of five international core banks: Banco Santander, BNP Paribas, Crédit Agricole Corporate and Investment Bank, Natixis and Société Générale Corporate & Investment Banking.

Further, Vallourec has reached an agreement to extend by three years its existing bilateral revolving credit facility with J.P. Morgan for its US subsidiary Vallourec Star, LP in an amount of $80 million.