Vallourec strengthens Aramco partnership, launches Brazil insulation manufacturing project
Why this news matters:
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Vallourec is deepening its role in two major offshore growth regions, supporting Saudi Arabia's drilling and unconventional resource ambitions while investing in technologies aimed at increasingly demanding deepwater developments in Brazil and beyond.
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The Brazil project will support ExxonMobil's Longtail and Hammerhead developments offshore Guyana and could help expand the availability of advanced thermal insulation solutions for future subsea pipeline projects across Latin America.
Vallourec has announced two initiatives aimed at strengthening its position in global offshore energy markets: a new agreement with Aramco to expand collaboration in Saudi Arabia and the start of construction on a Brazilian manufacturing facility that will produce advanced thermal insulation systems for subsea pipelines.
Together, the announcements highlight Vallourec's strategy of expanding local manufacturing capabilities while supporting major offshore developments in key growth markets.
Vallourec breaks ground on linepipe insulation production site in Brazil
Vallourec has started construction of a new production line at its Serra plant in Espírito Santo State, Brazil.
At a glance: Serra insulation manufacturing project
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Location: Serra, Espírito Santo State, Brazil
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Product: Proxxima resin systems with Goldilocks subsea thermal insulation technology (GDLX)
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Initial application: ExxonMobil's Longtail and Hammerhead developments offshore Guyana
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Significance: Largest line pipe orders Vallourec has booked to date
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Market focus: Deepwater projects in Guyana, Brazil and international markets
This will exclusively manufacture Proxxima resin systems with Goldilocks subsea thermal insulation technology (GDLX) technology.
ExxonMobil has licensed the technology, which will be featured in thermal insulated line pipes for the deepwater Longtail and Hammerhead projects offshore Guyana. These are the largest line pipe orders Vallourec has booked to date.
The projects are part of the growing offshore Guyana development portfolio, one of the world's most active deepwater oil and gas regions. But the technology will also be available to support increasingly complex offshore projects in Brazil and internationally, the company said.
Proxxima resin systems incorporating GDLX are said to deliver better thermal performance, extended cool-down time and faster application of insulation compared with conventional formulations.
Thermal insulation systems help maintain flow assurance in subsea pipelines by preserving fluid temperatures, reducing the risk of hydrate and wax formation during transportation from offshore fields to processing facilities.
Vallourec deepens Saudi manufacturing and OCTG partnership with Aramco
Vallourec has signed an agreement with Aramco to further strengthen the companies' commercial, industrial and technological relationship, reinforcing a partnership that began in 1962 with the supply of VAM premium connections for oil country tubular goods (OCTG).
The agreement was signed during the French-Saudi Investment Roundtable Meeting in Paris. According to Vallourec, the partnership has expanded significantly over the years, including the establishment of Vallourec Saudi Arabia in 2011 and the opening of a Dammam facility that performs heat treatment and threading of premium VAM connections locally.
In 2022, Vallourec signed a long-term agreement with Aramco to supply locally manufactured premium OCTG pipe, and in 2023 the company received an Aramco Local Manufacturers Quality Excellence Award for improved quality performance.
Vallourec said it continues to invest in Saudi Arabia through research and development programs and initiatives aimed at expanding local manufacturing capacity, including products required for the Kingdom's unconventional resource developments.
oil and gas operations offshore EgyptAbout the Author
Jeremy BeckmanJeremy Beckman
Staff Writer / Editor, Europe
Jeremy Beckman has been Editor Europe, Offshore since 1992. Prior to joining Offshore he was a freelance journalist for eight years, working for a variety of electronics, computing and scientific journals in the UK. He regularly writes news columns on trends and events both in the NW Europe offshore region and globally. He also writes features on developments and technology in exploration and production.
Ariana HurtadoAriana Hurtado
Editor-in-Chief
With more than a decade of copy editing, project management and journalism experience, Ariana Hurtado is a seasoned managing editor born and raised in the energy capital of the world—Houston, Texas. She currently serves as editor-in-chief of Offshore, overseeing the editorial team, its content and the brand's growth from a digital perspective.
Utilizing her editorial expertise, she manages digital media for the Offshore team. She also helps create and oversee new special industry reports and revolutionizes existing supplements, while also contributing content to Offshore's magazine, newsletters and website as a copy editor and writer.
Prior to her current role, she served as Offshore's editor and director of special reports from April 2022 to December 2024. Before joining Offshore, she served as senior managing editor of publications with Hart Energy. Prior to her nearly nine years with Hart, she worked on the copy desk as a news editor at the Houston Chronicle.
She graduated magna cum laude with a bachelor's degree in journalism from the University of Houston.