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Vallourec and Aramco sign new OCTG supply agreement in Saudi Arabia
The Paris agreement extends a commercial relationship that began in 1962 and builds on Vallourec's Dammam manufacturing base.
New OCTG supply agreement signed in Paris#
Vallourec and Aramco concluded a new oil country tubular goods supply agreement at the French-Saudi Investment Roundtable Meeting held in Paris on 9 September 2026. The deal builds on a commercial relationship that began in 1962, when the parties first contracted for Vallourec's VAM connections for OCTG pipes. Oil country tubular goods comprise casing and tubing deployed in oil and gas wells. Neither volume nor contract value was disclosed in the announcement.
Dammam operations and 10-year framework#
Vallourec Saudi Arabia was established in Dammam in 2011, providing local capacity for pipe heat treatment and threading of premium VAM connections. A 10-year supply agreement covering premium casing and services was concluded between the parties in 2022, with production and delivery handled through Vallourec's Saudi operations. Vallourec received the Best Improved Quality Performance distinction under the Aramco Local Manufacturers Quality Excellence Awards in 2023, according to the French manufacturer.
Supplemental orders placed in 2023#
Vallourec announced in November 2023 that it had received more than $300 million in supplemental Aramco orders for premium OCTG, distinct from the volumes governed by the 10-year framework. The orders comprised proprietary steel-grade casing and tubing engineered for high-pressure operating environments and fitted with premium VAM connections. Production was allocated across multiple Vallourec facilities, with deliveries scheduled for 2024.
VAM connection technology deployed since 1962#
Vallourec's VAM connection technology has been deployed across Aramco's drilling operations since the initial 1962 agreement. Philippe Guillemot, Vallourec Chairman and Chief Executive Officer, stated that the latest agreement reflects the relationship developed between the companies since 1962 and that Vallourec's local industrial presence enables it to support Aramco. The agreement was concluded as part of the French-Saudi Investment Roundtable Meeting in Paris.
Sources3 sources across 3 domains
- economymiddleeast.comEconomy Middle EastAgreement signed 9 September 2026 at French-Saudi Investment Roundtable Meeting in Paris, partnership dating to 1962, Vallourec Saudi Arabia established in Dammam in 2011, 10-year agreement signed in 2022, $300 million additional orders in November 2023, deliveries scheduled during 2024
- offshore-energy.bizOffshore EnergyAgreement signed at French-Saudi Investment Roundtable Meeting in Paris, 1962 first VAM connections agreement, 2011 Dammam facility inauguration, 2022 long-term agreement, Philippe Guillemot statement on relationship and local presence
- oilandgasmiddleeast.comOil and Gas Middle EastNew agreement signed to strengthen commercial, industrial and technology partnership
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