VALLOUREC : VALLOUREC : Vallourec pursues its long-term collaboration with Petrobras in Brazil

  VALLOUREC : VALLOUREC : Vallourec pursues its long-term collaboration with
                             Petrobras in Brazil

                                Press release


                Vallourec pursues its long-term collaboration

                           with Petrobras in Brazil

Belo Horizonte  /  Boulogne-Billancourt, 9  January  2013 -  Vallourec,  world 
leader in premium tubular solutions, announces  the renewal of its main  frame 
agreement with Brazilian national oil company Petrobras. Vallourec's Brazilian
subsidiary V &  M do  BRASIL and Petrobras  have signed  a 5-year-contract  to 
supply Petrobras' operations  with premium OCTG  products, including  seamless 
pipes, steel grades and connections  using state-of-the art technology.  These 
products will  be used  for  Petrobras' offshore  Oil  & Gas  exploration  and 
production wells, including the  huge reservoir of  the pre-salt fields.  With 
proven reserves of up to 16  billion barrels, pre-salt should represent  about 
30% of Petrobras' production  by 2020. The Brazilian  national oil company  is 
engaged in one of the largest investment plans in the world, amounting to  US$ 
236.5  billion  between  2012  and  2016,  including  US$  141.8  billion  for 
exploration and production, according  to the Business  Plan announced by  the 
company in 2012.

With this contract,  Vallourec consolidates  its worldwide  leadership in  the 
supply of premium OCTG products for the Oil & Gas industry. Philippe  Crouzet, 
Chairman of Vallourec's Management Board,  declared: "The renewal of the  main 
frame  agreement  with  Petrobras  is  an  important  step  in  our  long-term 
collaboration, dating  back to  60 years.  We  are honored  to be  trusted  by 
Petrobras, who is  renowned for  its technological excellence,  to supply  our 
most advanced  premium  tubular solutions,  and  support them  with  our  best 
innovation capability  in order  to tackle  the unequalled  challenges of  the 
pre-salt exploitation."

Huge technical challenges ahead

The Brazilian pre-salt  fields combine several  additional challenges  besides 
the salt  layer  itself: well  depths  up  to 7,000  meters,  ultra  deepwater 
conditions with up to 2,000 meters between surface and seabed, acid  corrosion 
caused by H[2]S  and CO[2]  contaminants, temperatures  and pressures  tending 
toward High Pressure/High Temperature conditions in certain areas. Associating
all these  parameters together  has  an important  impact on  the  exploration 
models, and on  the requirements for  OCTG material able  to withstand such  a 
combination of  mechanical,  corrosive  and  thermal  constraints.  Vallourec, 
through its  sustained  innovation  capability,  is able  to  meet  all  these 
technological needs and will supply Petrobras with the most advanced  seamless 
pipes for sour service using high alloyed  material as well as the latest  and 
unequalled advanced premium connection VAM^® 21.

Anticipating new demands for the pre-salt and growing challenges in the  still 
unexplored equatorial margins, Vallourec will open in 2013 a new R&D Center in
the State of Rio de Janeiro, located next to Petrobras' research center CENPES
in the Technological Park of Rio de  Janeiro, and will expand its current  R&D 
facilities located in Belo Horizonte, Minas Gerais.


Vallourec is a world leader in premium tubular solutions primarily serving the
energy markets, as well as other industrial applications.

With over 22,000 employees, integrated manufacturing facilities, advanced R&D,
and presence  in  more  than  20 countries,  Vallourec  offers  its  customers 
innovative global solutions to meet the growing energy challenges of the 21^st

Listed on NYSE  Euronext in  Paris (ISIN  code: FR0000120354,  Ticker VK)  and 
eligible for  the Deferred  Settlement System,  Vallourec is  included in  the 
following indices: MSCI World Index, Euronext 100 and CAC 40.

In the United States,  Vallourec has a sponsored  Level 1 American  Depository 
Receipt (ADR) program (ISIN code:  US92023R2094, Ticker: VLOWY). The ratio  of 
Vallourec ADR to ordinary shares is 5:1).

VAM^® is a registered trademark of the Vallourec group.


Press relations

Caroline Philips

Tel: +33 (0)1 41 03 77 50


Investor relations

Etienne Bertrand

Tel: +33 (0)1 49 09 35 58


130109_PR Vallourec Petrobras_ENG_(pdf)


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Source: VALLOUREC via Thomson Reuters ONE
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