Industrial group Vallourec has announced the signing of a multi-year agreement with Petróleo Brasileiro S.A. (Petrobras), worth up to $1bn (€852mn), for the supply of seamless tubes and connections for its offshore drilling activities. The contract, running from 2026 to 2029, also includes high-value-added technical and logistical services.
This new engagement with the Brazilian state oil company strengthens Vallourec’s strategic position in the South American market, where the group now concentrates most of its production. Under the contract terms, Vallourec will provide not only manufacturing but also engineering, inventory management, and operational preparation of tubes before shipment to offshore drilling platforms.
Industrial consolidation in Brazil
Present in around 20 countries, Vallourec has in recent years refocused its activities around its Brazilian sites following the closure of its German plants and the elimination of 3,000 jobs. This restructuring, launched after years of financial difficulty, allowed the group to significantly reduce its debt and return to profitability.
In 2025, Vallourec paid out its first dividend in ten years. Its production for the oil and gas sectors now relies primarily on its facilities in Brazil, where the company has developed a fully integrated industrial hub tailored to local and international client needs.
Declining half-year results but steady outlook
For the first half of 2025, Vallourec recorded revenue of €1.85bn (-10.7%) and net profit of €126mn (-41.7%). This decrease was partly due to the absence of exceptional high-end orders that had supported results the previous year. Nevertheless, the group expects a rebound in its gross operating income from the third quarter.
Since August 2024, Vallourec has counted ArcelorMittal as its reference shareholder, holding 27.5% of the capital, following an acquisition deal estimated at €955mn. This equity partnership strengthens its investment capacity and potential to secure new contracts in the energy sector.
Proven scale-up capacity
Vallourec Chief Executive Officer Philippe Guillemot emphasised that the contract covered the full range of products and services offered by the group, serving as a medium-term growth driver. He described it as a tangible indicator of the company’s strategic and operational repositioning undertaken in recent years.
The partnership with Petrobras marks a new stage for Vallourec in its industrial anchoring in Brazil, the main export market for its offshore tube products. The agreement aligns with Petrobras’ continued development of pre-salt fields, one of the world’s largest deepwater exploration programmes.
