Vallourec wins major Line-Pipe order from ExxonMobil Guyana

Vallourec wins major Line-Pipe order from ExxonMobil Guyana

Meudon, France, 30 November 2022 – Vallourec has secured a third major order in the framework of the Long-Term Agreement (LTA) signed last year with ExxonMobil Guyana.

Under the contract, Vallourec will deliver line-pipe for ExxonMobil Guyana’s deep-water Uaru project. The Uaru project is located in the Stabroek Block, a 26,800 km² strategic basin located off Guyana’s continental shelf, where several important discoveries have been made since 2015.

The Group will deliver 35,000 metric tons of line-pipe, including 2,000 metric tons of X80, an innovative and unique material developed and qualified by Vallourec’s R&D teams. The X80 combines high strength with resistance to service conditions, making it a key enabler for future deeper-water developments.

Following the Yellowtail and Gas-to-Energy orders, signed under the same LTA, the Uaru order further strengthens Vallourec’s strategic supplier relationship with ExxonMobil Guyana, underpinned by a significant backlog of line-pipe orders of approximately 90,000 metric tons (or 520 km of line pipe) booked since December 2021.

Vallourec will serve ExxonMobil Guyana from its state-of-the-art Jeceaba (Minas Gerais) factory which combines large production capacities and premium capabilities.

Philippe Guillemot, Chairman and Chief Executive Officer of Vallourec, commented: “This significant new contract represents the third under the 10-year frame agreement signed last year with ExxonMobil Guyana.   Our new grade X80 has been qualified by ExxonMobil and will be field-proven with this order, demonstrating Vallourec’s ability to deliver solutions to the industry that are both technology and efficiency enablers. This is a new milestone in Vallourec's long history with ExxonMobil, and I would like to thank ExxonMobil once again for its confidence and our own teams for this great work”.

The contract is subject to ExxonMobil Guyana securing necessary approvals from the Government of Guyana for the project.

About Vallourec

Vallourec is a world leader in premium tubular solutions for the energy markets and for demanding industrial applications such as oil & gas wells in harsh environments, new generation power plants, challenging architectural projects, and high-performance mechanical equipment. Vallourec’s pioneering spirit and cutting-edge R&D open new technological frontiers. With close to 17,000 dedicated and passionate employees in more than 20 countries, Vallourec works hand-in-hand with its customers to offer more than just tubes: Vallourec delivers innovative, safe, competitive, and smart tubular solutions, to make every project possible.

Listed on Euronext in Paris (ISIN code: FR0013506730, Ticker VK), Vallourec is part of the CAC Mid 60, SBF 120 and Next 150 indices and is eligible for Deferred Settlement Service.

In the United States, Vallourec has established a sponsored Level 1 American Depositary Receipt (ADR) program (ISIN code: US92023R4074, Ticker: VLOWY). Parity between ADR and a Vallourec ordinary share has been set at 5:1.

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