French pipe manufacturer Vallourec has announced that it has secured a new phase contract with France-based petroleum company TotalEnergies to supply premium tubular solutions for the drilling of 48 wells for the Associated Gas Upsteam Project 2 (AGUP2) Project, one of the main components of the Gas Growth Integrated Project (GGIP) in Iraq. The contract covers over 30,000 mt of casing, tubing and premium line pipe with anti-corrosion coatings, representing a substantial expansion of the group’s prior supply of around 15,000 mt for the initial 30-well phase.
The GGIP is designed to harness associated gas from the Ratawi oil field and other southern Iraq oil fields to bolster electricity supply, reduce routine gas flaring, and support the country’s energy-transition efforts.
Strategic importance and market implications
The contract illustrates several key dynamics:
- Energy transition and flaring reduction: AGUP2’s focus on capturing associated gas aligns with global decarbonization imperatives and offers opportunities for tubular-solutions suppliers in energy infrastructure upgrades.
- Premium tubular growth: Vallourec’s role emphasizes growing demand for high-specification tubing and casing (with anti-corrosion coating, premium line-pipe) in complex wells and harsh environments.
- Emerging-market infrastructure: with Iraq looking to expand its oil-and-gas upstream and power generation capacity, projects like GGIP provide growth avenues for European tubular goods manufacturers.