VALLOUREC: Vallourec to supply the offshore Xerelete field in Brazil

     VALLOUREC: Vallourec to supply the offshore Xerelete field in Brazil

Vallourec to supply the offshore Xerelete field in Brazil

Vallourec Tubos do Brasil was selected for Total's operatorship in Brazil

Belo Horizonte  / Boulogne-Billancourt,  14 October  2013 -  Vallourec,  world 
leader in premium tubular solutions, announces that Vallourec Tubos do Brasil,
Vallourec's wholly-owned  Brazilian subsidiary,  has been  selected to  supply 
premium pipes for the offshore Xerelete field in Brazil, of which Total became
an operator in June 2012. The Xerelete  field is located in the Campos  Basin, 
around 250 kilometers off the coast of Rio de Janeiro in 2,400 m water  depth. 
Vallourec's products will be used in  the exploration and appraisal wells  for 
additional oil and gas resources. Drilling operations are due to start by  the 
end of the year.

The tubes will  be produced at  Vallourec Tubos do  Brasil in Belo  Horizonte, 
Minas Gerais.  The  mill  successfully achieved  the  extensive  qualification 
process required  by Total  and is  now part  of its  approved suppliers,  for 
providing OCTG^[1]  products, such  as casings,  tubing and  accessories  with 
premium connections. The choice  for a local pipe  supplier can be related  to 
Total's strategy of  working with local  suppliers, valuing the  comprehensive 
structure that the country has in the area. In addition, it speeds up the  oil 
and gas  exploitation process,  avoiding for  products to  have to  come  from 

Denis Palluat de Besset,  Managing Director of TOTAL  E&P do Brasil  declared: 
"Within our strategy of  developing our presence in  Brazil, it was  important 
for us to work with  a reliable, premium partner  for our OCTG products.  With 
Vallourec Tubos do Brasil, we found  the level of excellence of the  Vallourec 
Group, combined  with  the  experience  and proximity  a  local  supplier  can 

Philippe Crouzet, Chairman  of Vallourec's  Management Board,  added: "We  are 
very pleased to have been selected by Total for their operatorship in  Brazil. 
On top  of our  long-term  presence in  this  country, the  qualification  and 
selection of  our  local  subsidiary recognizes  the  level  of  technological 
expertise and qualified workforce that we  have developed, which make us  able 
to fulfill the high standards required by Total in any parts of the world."

Extended partnership

In addition to the premium  products, Vallourec Tubos do  Brasil will be in  a 
position to offerseveral kinds of  services, such as storage, inspection  and 
preparation for use, follow-up of pipes running downhole and inspection  after 
the products return from the rig, ensuring greater safety and speed to Total.

This contract  extends the  existing cooperation  between the  two Groups,  as 
Vallourec is already  supplying Total  in more  than 25  countries across  the 


[1] Oil Country Tubular Goods

About Vallourec

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

With over 23,000 employees, integrated manufacturing facilities, advanced R&D
and a presence in more than 20 countries, Vallourec offers its customers
innovative global solutions to meet the energy challenges of the 21st century.

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

In the United States, Vallourec has established a sponsored Level 1 American
Depositary Receipt (ADR) program (ISIN code: US92023R2094, Ticker: VLOWY).
Parity between ADR and a Vallourec ordinary share has been set at 5:1.

For further information, please contact
Press relations                Investor relations
Caroline Philips               Etienne Bertrand
Tel: +33 (0)1 41 03 77 50      Tel: +33 (0)1 49 09 35 58

131014_CP Vallourec selected by Total in Brazil_pdf


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Source: VALLOUREC via Thomson Reuters ONE
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