Saudi Arabian energy producer Aramco has signed a purchase agreement for oil country tubular goods (OCTG) with France-based seamless pipe producer Vallourec, according to information reported by the Saudi Press Agency and Aramco.
Deal to strengthen Aramco's OCTG supply chain
The pipe deal forms part of a broader group of agreements and a memorandum of understanding signed by Aramco and Aramco Digital with French companies, carrying a potential combined value of more than $3.7 billion.
While the value, tonnage, duration and delivery schedule of Vallourec's OCTG agreement were not disclosed, the transaction is expected to strengthen Aramco's supply chain resilience and operational continuity while supporting capacity development, technology transfer and innovation.
The broader package also includes a corporate procurement agreement for drilling equipment and potential cooperation in industrial artificial intelligence and digital-twin technologies.
Vallourec expands longstanding partnership with Aramco
The latest agreement builds on Vallourec's existing cooperation with Aramco. In 2022, the companies signed a ten-year contract covering the supply of casing, tubing and associated services for part of Aramco's premium OCTG requirements. Vallourec also operates a 38,000 m2 Tubular Management Services facility in Dammam dedicated to Aramco, where pipes are stored, inspected and prepared for delivery to drilling operations.
