French pipe producer Vallourec has signed two major contracts totaling over $130 million to supply oil country tubular goods (OCTG) to Chinese oil giants CNOOC and PetroChina for use in Iraq’s expanding oil drilling projects. These contracts, set for delivery throughout 2025 and 2026, aim to meet the growing demand for high-performance tubular solutions in one of the world’s most resource-rich oil regions.
Carbon and super-13Cr OCTG with VAM connections
The agreement includes the supply of carbon steel and Super-13Cr OCTG products equipped with VAM premium connections, known for their durability and leak-resistance. These advanced materials are engineered to withstand the demanding conditions of Middle Eastern oil fields.
Super-13Cr, a special steel alloy that is corrosion-resistant and highly resistant to high pressure, is used in areas with high carbon dioxide and low hydrogen sulfide content.
Iraq's oil ambitions: from 4.1 million to 6 million barrels per day
Iraq, home to some of the largest untapped oil reserves globally, is accelerating its energy development. Iraq’s Ministry of Oil plans to increase the country's oil production capacity from 4.1 million barrels per day in 2025 to 6 million barrels per day by 2029. This surge in exploration and production activity necessitates premium-grade OCTG solutions capable of operating in technically complex and high-pressure environments.
"With these awards, CNOOC and PetroChina have acknowledged Vallourec's competitiveness and ability to supply significant quantities of premium material in a short time frame," said Philippe Guillemot, chairman and CEO of Vallourec Group. He noted that VAM connections are increasingly favored by operators in Iraq and across the Middle East for their durability and ease of use.