Vallourec and Aramco Strengthen Partnership with New OCTG Supply Agreement

Vallourec, a world leader in premium seamless tubular solutions, has announced a significant partnership with Aramco, a leading Saudi Arabian national oil company. The companies have signed an agreement to further supply oil country tubular goods (OCTG), marking a strengthening of their long-standing relationship.

The agreement was signed during the recent French-Saudi Investment Roundtable Meeting in Paris, reflecting the ongoing commitment of both companies to work together. Vallourec and Aramco have maintained a business relationship since 1962, when they first entered into an agreement to supply the first generations of VAM® connections for OCTG pipes. Over the past six decades, Vallourec has expanded its presence in Saudi Arabia, establishing a strong local industrial presence.

In 2011, Vallourec Saudi Arabia (VSA) was established, inaugurating an industrial facility in Dammam. This move enabled Vallourec to perform heat treatment of pipes and threading of premium VAM® connections locally. The company's commitment to local manufacturing has continued to grow, with a 2022 long-term agreement that solidified its position as a key supplier of locally manufactured premium OCTG pipes to Aramco.

Vallourec's dedication to innovation and quality was further recognized in 2023, when the company was honored as a Best Improved Quality Performance winner in the Aramco Local Manufacturers Quality Excellence Awards. This award underscores the ongoing collaboration and mutual trust between the two leading industrial groups.

Philippe Guillemot, Chairman of the Board of Directors and CEO of Vallourec, stated, "This agreement is a testament to the strong relationship Vallourec has built with Aramco since 1962. It reflects the mutual trust between our two leading industrial groups and further strengthens our ties. Vallourec is now an important player in Saudi Arabia, with a strong local industrial presence that enables us to best serve Aramco and ensure the security of supply to the Kingdom, despite current logistical constraints."

Vallourec continues to invest in Saudi Arabia, focusing on research and development (R&D) projects aimed at expanding its production capabilities. The company is committed to locally manufacturing the products required for new developments in the Kingdom, particularly those aimed at unlocking unconventional resources. Through these efforts, Vallourec aims to provide innovative, safe, competitive, and smart tubular solutions to support the energy sector's needs.

The agreement between Vallourec and Aramco is expected to enhance the security of supply for both companies and contribute to the sustainable growth of the energy industry in Saudi Arabia. As the partnership continues to evolve, both companies remain committed to fostering a robust and enduring collaboration.