Japanese steelmaker Nippon Steel and Sumitomo Metal Corporation (NSSMC) has announced that VAM® BRN Sdn Bhd (VAM® BRN), a joint venture (JV) set up in Brunei by NSSMC, Sumitomo, and France-based Vallourec Tubes S.A.S., has commenced its commercial operation as of November this year. VAM®BRN will provide OCTG pipe threading services in Brunei, with its threading capacity of 18,000 mt per year. The investment for the joint venture stands at $36 million.
According to NSMMC, commencement of the commercial operation at VAM® BRN will contribute to the development of local employment, and knowledge transfer from Japan to Brunei.
NSSMC also stated that, as drilling conditions are becoming increasingly harsh, the demand for premium connections for seamless OCTG pipes for the crude oil and natural gas industry is on the rise. VAM®BRN will develop a system for stable supplies of seamless OCTG pipes.