focus new frontiers and powerful solutions for africa … vallourec oil & gas magazine n 09 /...

The Vallourec Oil & Gas magazine N°09 / March 2017

Focus

New frontiersand powerfulsolutionsfor Africa------SolutionsOne Stop Shop: making our customer’s life easier

VAM® Engineering Services for support beyond the pipe

-------------The tech filesRevolutionary Cleanwell Dry 2: cleaner, faster, safer

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Publisher: Vallourec Oil and Gas France - 27, avenue du Général Leclerc, 92660 Boulogne Billancourt Cedex - FranceChief Editor: Rebecca Le Rouzic ([email protected]) - Phone: +33 1 49 09 36 47 - Editor, interviews and articles:Stephan Caso - Drilling section editor: Larissa Hernandez - Pipe Project section editor: Zoe Stowell - Production: Zabriskie, ParisDesign: LeGrand8, Paris - Photographs: Vallourec, Serimax, Stephan Caso, Thierry Truck, Christophe Guibbaud / CAPA, 123RFor as mentioned otherwise. All rights reserved.

VAM® is a registered trademark of Vallourec Oil and Gas France

Edito

Dear customers,partners and readers,

The Vallourec Oil & Gas Magazine N°09 / March 2017 / p.3

www.connection-mag.com www.vallourec.com

The last 2 years have been impacted by the unprecedented collapse of oil & gas

exploration and production investments. Vallourec considers this challenging context

as an opportunity to carry out a significant transformation plan with a stronger focus

on competitiveness, innovation and customer proximity.

The horizon of the oil & gas market, though fragile and unpredictable, is brightening,

supported by oil prices on the rise and the emergence of an upturn in the United States,

on the one hand, and new exploration frontiers in Africa, on the other. Vallourec is more

than ever dedicated to its customers and stakeholders, with an unwavering commitment

to develop high value solutions, reliability and sustainability.

Vallourec is bringing proximity to a new level, at the heart of its customer strategy.

We are now deployed and organized in 4 regions, each with commercial and

industrial capabilities to provide best-in-class products and services. For improved

cost-effectiveness, Vallourec has rationalized production in Brazil and Europe

while making the acquisition of Tianda, in China, to provide clients with a new highly

competitive pipe offer at Vallourec standards, with no compromise to safety, quality

and reliability. Our cost-effective measures extend to global solutions and one stop

shop capabilities in the Middle East and Asia, North and South Americas, Europe and

Africa. The Vallourec transformation plan increases proximity, with leaner and simpler

execution, aiming to lower the total cost of ownership for our customers.

Innovation, meanwhile, remains the spearhead

of Vallourec's technological frontier. Our research

and development engineers and field teams are

relentlessly working to create new solutions for

tomorrow's challenges. Our experts work with

you, from the earliest stages of your projects, to

help you optimize product and well design, for

maximum operational excellence, flow assurance

and well integrity.

Vallourec is decidedly turned to the future, ready

for the oil market revival. I am proud to intro-

duce you to a selection of our recent achieve-

ments and solutions in this issue of Connection

magazine.

Happy reading!

Didier Hornet, Senior Vice President,

Development & Innovation.

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Over 130 years ago, the Group’s founders were already pioneering innovative technologies that would revolutionize the tube industry. Since then, Vallourec continues to open new technological and geographical frontiers. Driven by passion and commitment, more than 20,000 employees o� er more than tubes: they provide cutting-edge products and tailored solutions. Always more reliable, always more competitive. Vallourec contributes to making all your projects possible, wherever you need us, whenever you need smart tubular solutions. vallourec.com

possible

Wemake the impossible


VISIT US AT…DUG Permian3-5 April 2017Fort Worth, Texas, USA

IADC World Drilling Conference28-29 June 2017Amsterdam, The Netherlands Booth #3 & 4

IADC Drilling Middle East 3-4 October 2017 - Dubai Booth #3

SPE Annual Technical Conference & Exhibition9-11 October 2017San Antonio, Texas, USABooth #1475

Deepwater Operations Conference & Exhibition7-9 November 2017Galveston, Texas, USA

NewsContents

Page 6

FocusNew frontiers and powerful solutions for Africa

Page 12-13-14

SolutionsCleverScan: the smart digital technology for welders, by SerimaxInternax: enhancing our range ofsolutions for the landline market VAM® Engineering Servicesfor support beyond the pipe

Page 15

The tech filesCLEANWELL® DRY 2 saves you time and money and protects the environment

Pages 20-23-24

Solutions Vallourec Global Solutions:making our customer’s life easierNorth America: spotlight on wellcoordination services Forged completion landing stringaddresses industry challenges

Page 26-27

On the market Advanced premium solutionsfor geothermal energy projectsA new milestone for VallourecUmbilicals

Page 28

StrategyVallourec: stronger and more competitive

0

EventsStrengthened presence in China

Page 31

PeopleScott Granger, R&D engineer at Vallourec Drilling Products

3,730 WELDS TO BE PRODUCED BY SERIMAX AT THE ORKANGERSPOOLBASE

Many of today’s oil & gas

projects take place in increa-

singly complex and extreme

environments (deep and ultra-

deep offshore, high pres-

sure/high temperature), sub-

jecting materials to severe

stresses. In-depth quality

control is essential to ensure

the integrity of the pipes and

connections throughout the

project lifetime. In order to

better assist customers in their

projects, Vallourec PT Citra

Tubindo, located in Batam,

Indonesia, is now equipped

with a state-of-the-art ultra-

sound control facility.

With this new equipment,

Vallourec can offer cutting-edge testing to meet customers’ strictest specifications and

the tightest industry standards.

Alexandre Noel, Non-destructive testing manager, Indonesia explained: “Thanks to the

installation of a new ultrasonic inspection facility with phased array technology, our non-

destructive testing capabilities are increased, proving our commitment to quality, safety

and reliability.”

STATE-OF-THE-ART ULTRASOUND CONTROLFACILITY AT PT CITRA TUBINDO, INDONESIA

TechnipFMC awarded Serimax for the welding of a major pipeline project in Norway.

This constitutes a new milestone in the TechnipFMC and Serimax partnership, signed

in 2016. The two companies are combining their expertise and deploying Serimax

Welding Technology at TechnipFMC’s spoolbases and on board TechnipFMC’s S-lay

vessels. The welding campaign started in late 2016, after a welding quality testing

programme carried out in Orkanger. Production includes double-joints at TechnipFMC’s

adjacent facility, joining 12m long tubes into 24m long tubes, after which the pipes

are transferred to the mainline production workshop, where they are welded into

pipestalks, ready for spooling onto the TechnipFMC reel-lay vessel. Serimax is welding

1865 double joint welds and 1865 mainline welds, using the advanced Saturnax-

09-system.

NEW OIL & GAS ACCESSORIES FACILITY IN SINGAPORE In 2016, Vallourec Tube-Alloy opened a new plant in Singapore.

The new plant is located in northern Singapore and is specialized in threading VAM®

premium connections on wellhead and completion equipment, as well as manufacturing

turnkey OCTG accessories. “Asia Pacific is a key market for Vallourec,” stated Olivier

Mathey, Vice President of Vallourec Tube-Alloy Singapore, “We are strengthening our

presence in Singapore, an important regional hub for the Oil & Gas industry, to offer

more services and match our customer requirements as closely as possible.”

The unit is fully qualified* to undertake the series of operations required to produce

VAM® premium connections. With 50 engineers and technicians and an annual capacity

of 25,000 threads, the facility is well positioned to deliver high added-value tubular

solutions to Oil & Gas equipment manufacturers and operators based in the region.

In January 2017, Vallourec Tube-Alloy Singapore received the OHSAS 18001 and

ISO 14001 certifications for health, safety and environmental management.

NEW VAM® FIELD SERVICE SITE IN TEXAS TO SERVE THE PERMIAN BASINThe market of the Permian Basin, a major

region for oil production, is expanding quickly

in west Texas and southeast New Mexico,

in the United States. To support this deve-

lopment, Vallourec’s American subsidiary,

VAM USA, will open a new VAM® Field

Service office in the town of Odessa.

Today, the network of VAM® Field Service

offices numbers 230 engineers, located in

11 regional hubs, who can be mobilized and

sent to a platform at any moment for pro-

duction, support or optimization.

The new office will support the growing num-

ber of VAM® customers in the Permian Basin.

Eric Shuster, President of VAM USA explains:

“VAM USA provides its customers with field

services 24/7. The key to our success is

working together with our customers to supply

them with the best advice, running support,

and tooling to reduce Non-Productive-Time,

optimize running operations, and bring value

over the life of their projects". This brings the

number of VAM® Field Service offices to six

in the United States, with three in Texas, one

in Louisiana, one in Oklahoma, and one in

Pennsylvania.

Vallourec received a certificate

from Total in recognition of its

participation in the ultra deep

water drilling record of the

RAYA-1 well, with a total

water depth of 11,168 feet

(3404 meters). Total began

drilling operations for this off-

shore well in Uruguay in

March 2016 and highlighted

the contribution and profes-

sionalism of Vallourec teams

throughout the process.

Congratulations to all !

WORLD RECORD FOR ULTRA-DEEP WATERDRILLING IN URUGUAY

From left to right: Olivier Mathey, Didier Hornet, Pascal Braquehais, William Gamisans.

TechnipFMC spoolbase at Orkanger, Norway.

p.4 / The Vallourec Oil & Gas Magazine N°09 / March 2017

*according to main industry standards: ISO 9001, API Q1, API 5CT

Focus

The Vallourec Oil & Gas Magazine N°09 / March 2017 / p.7p.6 / The Vallourec Oil & Gas Magazine N°09 / March 2017

New frontiers and powerful solutions for Africa

A continent of discovery,diversity and new opportunities for oil & gas

Africa has always been exciting, complex and diverse, amost fascinating land of exploration, adventure and dis-covery. It is no doubt the continent offering the greatestvariety of identities, with scores of different countries, anamazing multiplicity of peoples, languages, religions andcultures. Africa is a world of contrasts, of ever changingenvironments and climates, with extraordinary landscapesand oceans, where ancient traditional societies live along-side booming ultra-modern cities and business hubs. Lastbut not least, Africa is thriving with amazing natural resour-ces to the extent that it is believed most of Africa's naturalwealth and reserves are yet to be discovered. The recentfindings of formidable oil and gas fields in Uganda andTanzania, as well as off the coasts of Egypt, Ghana andMozambique prove this to be true. The lands and waters of North Africa and Sub-SaharanAfrica abound with massive reserves of oil and gas, many

of which at great depths, in the toughest environmentsimaginable. Whether onshore or offshore, in drilling or pro-duction, African markets require a full spectrum of productsand services to answer all requirements and configurations.You can find easy oil and gas calling for simple, low costanswers on the one hand, or the hardest to get oil in oceansand seas surrounding Africa, requiring the most advancedtechnologies and solutions, on the other hand. Vallourecis relentlessly seeking to provide the most efficient andpowerful solutions for its customers and partners in Africa.

Historical partners for long termdevelopmentVallourec has always been committed to supportingprojects and development throughout Africa. Webelieve in long term and long-lasting partnerships, inshared expertise, in meaningful local content and

development. Vallourec is present throughout thecontinent with sales offices, threading facilities, supporthubs, yard management and VAM® Field Service nearevery key market. Beyond local regulations and requi-rements, Vallourec supports local operators, stockdistribution networks and businesses, offering in-depth training to local engineers for product designand utilization, manufacturing and maintenance, weldingtechnologies and project management. ThroughoutAfrica, Vallourec can deliver its full scope of productsfor OCTG, drilling, offshore and onshore line-pipe andhydrocarbon processing together with a broad rangeof global solutions. With technical support and training, well coordination and accessories, stockmanagement, procurement and delivery solutions,VAM® Field Service maintenance and repair, Valloureccontributes to making all your projects possible.

Amidst the turmoil of the oilprice crisis, Africa is thrivingwith formidable naturalresources, opening new frontiers, challenges andopportunities for the oil & gasindustry for the years anddecades to come. Vallourecis proud to provide powerfulsolutions to its customers and partners throughout thecontinent, with a commitmentto innovation, proximity andcost-efficiency.

The port of CapeTown is located alongone of the busiestshipping corridors in the world.

Operators have focused on streamlining the morecomplex projects to lower the break-even point aswell as on developing new straightforward projectswith fast returns. Vallourec has sought to developcost-efficient answers to these new market cons-traints, supporting every project with competitiveoffers with no compromise on quality and safety.Being close to the market, establishing customer inti-macy and building partnerships to offer innovativesolutions, is more crucial than ever.

North African markets vibrant with exciting prospects North Africa offers great prospects for the Oil & Gasindustry, driven by the recent discovery of extraordinary

natural gas fields off the coast of Egypt, as well aswith Algeria’s strategic program to boost productionand processing and the potential revival of Libyan oilproduction. Beyond the great fields of Zohr, revealedby ENI in 2015, North Africa is truly vibrant with exci-ting prospects for drilling, OCTG, line pipe projectsand hydrocarbon processing. Vallourec is strengthe-ning its footprint with a new sales and service officein Algiers, in addition to the office established in Egypt,in 2009. Philippe Laurent, Regional Sales Managerfor Onshore Line Pipe said: "The qualification processto tender for projects in this area can be lengthy anddemanding, but success is all the more rewarding!We work very closely with our customers and haveestablished fruitful long-term relationships based onunderstanding, trust and reactivity. The new office inAlgeria will reinforce this proximity and help us servethe growing demand."

A wealth of opportunities in Westand in Sub-Saharan Africa Although new deep and ultradeep projects havebeen postponed in West Africa, Vallourec is stillbusy delivering offshore projects, like those ofExxonMobil in Angola, or Total in Nigeria and Congo.Vallourec remains close to all its partners, workingwith NOCs, IOCs, and independent operators toredesign projects, optimize potential and lower coststo make these projects profitable at a 50-60 $ oilbarrel. With the perspective of higher oil prices, itis clear that most offshore projects, including thehuge offshore potential in Mozambique, will graduallybecome viable and be re-activated, requiring theexpertise, innovation and global solutions thatVallourec can offer. Meanwhile, simple onshore and lower cost offshore projects are providing opportunities in Senegal andIvory Coast, in Mauritania, Sierra Leone and Gabon.Vallourec is actively developing lower cost supply routesby associating pipes from Tianda in China with VAM®

connections to provide high quality, competitive solutions.In Uganda, Kenya and Tanzania, where hundreds ofwells are planned for the coming years, Vallourec isstrengthening its presence, ready to serve the marketwith best-in-class drilling and OCTG products and services.


News Focus The tech files Solutions On the market Events People

South Africa has become a major business hub fornumerous oil and gas companies operating in theSub-Saharan region, with easy access to the hugemarkets of West & East Africa. Henri de Fonvielle,Director of Vallourec South Africa, testifies: "Theadvantage of being in Johannesburg is obvious:numerous headquarters covering Sub-Saharan pro-jects are based here, the city is buzzing with peoplefrom all over the world. Business in Africa impliesbeing close to all the players, where new projectsand challenges are discussed daily. You have to behere, where the action is, just a phone call away fromyour counterparts. We are in regular contact withSasol, the largest South African chemical and energycompany, whose managers, engineers, operationalsales departments are all based in Johannesburg.Travelling to all the surrounding countries and areasis very easy from Johannesburg, which means wecan meet people every day, building the strong relationswe need with local industry players from internationaloperators through to the smallest distributors."Since opening the Johannesburg office in SouthAfrica, Vallourec has received strong interest fromthe market and has secured quality orders for a whole array of projects. Awards include OCTG inMozambique for onshore wells, OCTG in South Africafor a future offshore exploration project, drill pipes toequip offshore and onshore projects through rental

companies; together with line pipe and fittings toSouth African distributors for the hydrocarbon pro-cessing market. In short, Vallourec is working andgrowing enthusiastically with allthe key clients and partners inSouth Africa, developing businessand prospects for Uganda,Tanzania, Kenya, Angola, Gabon,Congo, Nigeria, Ghana, with moreto come.Thanks to its globally acknowled-ged expertise, Vallourec has alre-ady participated in major complexprojects throughout Africa suchas Kaombo and CLOV in Angola,Egina in Nigeria, Tullow TEN inGhana, and Moho Nord in Congo,providing a full range of products,services, solutions and projectmanagement. “There are definitelysigns that activity will be pickingup in the coming months. With thefantastic potential of Mozambique,for example, International Oil Companies are settingup future bases for development in the area. Our pre-sence in Johannesburg will prove essential by pro-viding competitive and innovative solutions for allincoming requests.” concludes Henri de Fonvielle.

The essence of customer intimacy is proximity, which is why, in 2015, Vallourecset up a new office in Johannesburg. After little more than a year, Vallourec hasdeepened relations with its customers, as well as with local operators, distributorsand industry players, particularly for the Sub-Saharan oil & gas markets.

At the heart of the African Oil & Gas industry in Johannesburg

Algiers - Algeria Sales Office

Lagos - Nigeria Sales & Services

Luanda - Angola Sales & Services

Johannesburg - South Africa Sales & Services

Port Gentil - GabonSales & Services

Cairo - Egypt Sales & Services

Tanzania)

Nairobi - Kenya(Uganda and

Sales & Services

Takoradi - GhanaSales & Services

Port Harcourt - Nigeria Threading Plant

Oil Gas

A quick overview of African markets and projects shows that although the mostchallenging offshore projects have been put on hold since the collapse of oil prices,the projects that were sanctioned prior to the crisis are still ongoing.

Vallourec addresses the vast array of markets in Africa

Vallourec delivered beyond the pipe for the Tullow TENproject, off the coast of Ghana, in 2015 and 2016. We co-designed and tailored all the solutions withSubsea 7, seeking end-to-end integrity to guaranteemaximum flow assurance. For TEN, we helped optimizethe pipe-in-pipe design, provided fully integrated solutions that included non-standard pipe dimensions,pipe in pipe, coating as well as double-joints. We moni-tored the whole process from the mill to delivery, withinnovative integrated planning and project manage-ment, all the way to J-lay welding on the barge.

Global solutions with Tullow TEN

Vallourec locationsin Africa

The landmarkHillbrow Tower inJohannesburg.

Identifiedreserves

• Pipe-in-pipe

• Coating

• Sleeves

• Welding

• Double-jointing

• J-Lay

• Project

management

• Fully integrated

planning

• Logistics




“Africa's hydrocarbon potential continues to grow atan incredible pace, a development slowed but unde-terred by the oil price crisis,” says Hubert Paris,Regional Director for Europe & Africa. "The new gasdiscoveries in Mozambique and Tanzania, as well asrising exploration in Kenya and Uganda, are changingthe game and making East Africa a future big playerin the global industry.”

Already in the fieldAfrica holds an estimated 8-10% of world reservesin both oil and gas, and a large share of these futurereserves are to be found off the coast of Mozambique.Nonetheless, with most of these fields in ultra deepwaters, the price tag to first oil is steep. In addition tochallenging market conditions, operators will have toinvest in considerable infrastructures that are lackingin the eastern regions, as well as rely on trustworthypartners to overcome the technical and logistical barriers of such projects. "This is where Vallourec proves one of the most reliable and solid partnersfor East African developments," Hubert Paris says,"Our experience and innovation track record in deepand ultra deep offshore solutions speak for themsel-ves. We have the expertise in premium pipe designfor drilling, OCTG and line pipe, together with advan-ced welding technologies. Furthermore, our teamsare seasoned in large project management and fieldservice. Our track record includes major achievementslike CLOV, Egina and Tullow TEN, amongst manyothers, bolstered by the worldwide reputation of ourVAM® service network." "Vallourec is already in the field, on these new

markets, helping operators conquer new frontiers,"confirms Damien de Montlebert, OCTG CommercialDirector for Europe & Africa. "Vallourec is strengthe-ning its regional footprint in Nigeria, Gabon, Angola,for West Africa, in Algeria and Egyptfor North Africa, as well as Kenya andSouth Africa. Even in Mozambique,we already have an onshore rig equip-ped with Vallourec products, and havedelivered OCTG casing and tubing toSasol."

Sustainable value for the customer"For every future development,Vallourec must demonstrate bothsuperior technical efficiency and costeffectiveness. We seek to bring sus-tainable value to the customer, andnot just a promise. Good solutionstranslate into saved costs, increased quality andsafety, greater field support and field efficiency, mea-sured by time saved and well integrity. Vallourec isproud to bring powerful solutions to Africa and enthu-siastic to help sustain the growth of its new frontiers!"concludes Hubert Paris.

As the world seeks new fossil fuel reserves, all eyes are turned towards Africa’s east coast. Vallourec is supporting its customers with innovative, cost efficient solutions.

Ready for the future, ready for new frontiers!

Setting up a threading mill in NigeriaVallourec's Augustin Irabor, OCTG CommercialDirector, Nigeria, explains: “Local content is essentialand mandatory in Nigeria. It involves producing orsubcontracting a certain portion of every projectlocally to support and develop local human resourcesand skills. Vallourec set up sales and services asearly as 2007, followed by a threading mill in PortHarcourt in 2009, creating jobs, developing localknow-how and stimulating training. It has helped usconsolidate relations with our customers, understandtheir needs and demands and participate in the deve-lopment of the country. Concerning customer benefit,however it's maybe too early to tell, because this levelof investment in local content comes at a cost foroperators and companies and can prove an expen-sive policy. For Vallourec, it's clearly a positive expe-rience and constitutes a major asset. Our challengein the future, however, is to make this kind of localcontent more cost efficient and appealing for ope-rators as well as local contractors and engineers.”

Working with local players and training young engineersKarsten Walz, Area Sales Manager for OffshoreLinepipe recalls two aspects of Egina's local content:

“Egina was a major offshore project with a lot of tech-nical barriers which called for Vallourec’s expertise.My first task in Nigeria was to find the best local partnerto work with us. Bell Oil and Gas, proved to be a veryserious and dedicated partner, for a very challengingproject, and together we successfully delivered theflowline and riser package of the project. One of themost original aspects of our partnership was certainlyour training program for 10 young Nigerian engineers.The training began with a focus on safety, followedby a comprehensive technical program to explain themanufacturing process, from steel production throughto the finished seamless pipes. The training encom-passed testing protocols, yield strength calculation,steel mechanical properties. The program also inclu-ded a visit to several R&D facilities in Europe, a visitto coating suppliers and to the harbor of Antwerp,to see how Vallourec manages and organizes trans-port to Nigeria. It was completed with a visit toSerimax, with demonstrations to understand how thepipes are welded and what technologies are usedfor pipe fabrication for subsea applications.”

Operating a local spoolbase and training local workers in weldingtechniquesJulien Blondeel, Commercial Director at Serimax, tes-tifies: “For the Pazflor project in Angola, we workedwith TechnipFMC, operating from the spoolbase inDande, assuring that 65% of the business was localcontent. All of the welding, inspection and field-jointcoating activities were under Serimax's responsibility.Our training plan carried out with TechnipFMC, invol-ved the selection of 30-40 local workers as well as5-6 high-potential leaders. The latter followed an inten-sive 6-week training program in Europe, so they would in turn become the trainers of the workers in Angola.At the end of the day, 60-70% of the staff working on the spoolbase were local. The training includedwelding and spoolbase operations together with highlyqualified project management positions.”

Vallourec's commitment to local content in Africa is historical and long lasting. For decades, Vallourec has sought to support local companies, train a newgeneration of engineers and technicians, and set up facilities near project locations.Local content comes at a cost, but is in its essence a true added value in thedevelopment of countries and populations, building bonds and relationshipsbeyond projects. Here are a few testimonies to our most successful ventures.

Meeting the challenges of local content in Africa

Hubert Paris,Regional Directorfor Europe & Africa.

Malcom Watt(center), RegionalHSEQ ManagerEurope, with Serimax trainees.

We can provide the best solutions for

the most complexprojects with thecapacity to setup

local Global Solutionsand One Stop Shop

capabilities, right next to future

prospects.

‘‘

‘‘

Internax is the new internal welding clamp for 48” linepipes*, capable of correcting out-of-roundness andparticularly suited for cross-country landlines.Unmatched on the market, the device includes eightfully automatic welding heads that perform root passesfrom inside the pipe. This is especially important wherecustomer specifications forbid welding on copperbacking. A wireless remote control system enhancesoperator safety; in addition, pipe re-rounding capabilitiesreduce hi-lo and fit-up time as well as improve weldquality. All these attributes make Internax one of the hig-hest productivity welding solutions.

High productivity in cross-countrylocations“Internax is the fruit of customer needs, market analysisand technological expertise. Taking Maxiluc, our highpower internal line-up clamp for mountainous terrains, asa starting point, we developed a tool specifically designedfor regions with flat, plain terrain profiles. In cross-countrylocations, especially in flatlands, with a low number ofcrossings, productivity will be exceptionally high. This newtool completes our range of landline welding solutions,giving us powerful answers for a greater number of tiers, with very high performance,” said Frédéric Lepla,responsible for Landline Project Development.

Complete range of welding solutionsThanks to the addition of Internax to the company’s port-folio, Serimax now offers an even more complete rangeof welding gears, with or without copper backing shoes,at all productivity rates for more terrain and topographytypes than ever.By combining Internax for internal root passes andSaturnax, our automatic orbital welding torch (bug-and-bandsystem) for external filling, we can propose the most completeand efficient welding solution on the market.

p.12 / The Vallourec Oil & Gas Magazine N°09 / March 2017 The Vallourec Oil & Gas Magazine N°09 / March 2017 / p.13

Enhancing our range of solutions for the landline market

InternaxCleverScan

Ensuring the correct line up of pipes for installation can be challenging, time consumingand costly. To help customers face this very specific challenge.Serimax, designed a new welding clamp that facilitates the welding procedureand improves installation productivity, whatever the terrain and topography of the pipeline.

Today, Serimax has one of the largest portfolios of specialised pipeline welding equipment in the world, with over 500 dual headSaturnax welding bugs, 135 pipe-facing machines (PFMs) and 180 internal line-up clamps (ILUCs). The company offers welding services and guarantees the highest quality in the world. Over the past five years, Serimax has managed eight global projectssimultaneously each month and performed in excess of 187,700welds annually with a repair rate of less than 2 per cent.

The largest portfolio of specialised equipment

* In response to customer needs,Serimax intends to extend its rangeto cover 36” and56” diameter pipe.

[email protected] - www.serimax.com

Improving productivity and minimizing non-qualityrelated costs is a key focus in the Oil & Gas industry:repeated processes must be optimized, fast and reli-able to speed up execution and reduce the overallcost of a project. Pipeline welding is typically a repe-titive process, in which pipe sorting and pipe-endpreparation can be time consuming and a source ofproblems, flaws, repairs or slowdowns.Introduced in 2015, CleverScan was specifically desi-gned to help customers solve recurring problemsduring pipeline installation related to out-of-roundnessat pipe ends (weld cut outs, poor quality welds, rejec-ted welds, production stopped in the bead stall...).It is an optimal, accurate and quick measurementtool, with state-of-the-art software, all packed in asimple tablet and a user-friendly interface. CleverScanchecks pipe-end dimensions with advanced analysisto propose solutions that include quality control, line-pipe sorting and pipe end-to-end fit-up, based ondigital measurements and simulations. Whether a project has large tolerance levels, with

low-specification pipe or aproject has the most strin-gent specifications forgroundbreaking offshoreapplication, welding ope-rations impact the execu-tion-time and cost of theproject. Minimizing risk and

improving welding flow are key: by integrating addi-tional measurement services, CleverScan helps anti-cipate project planning and improve welding opera-tions. In 2015 and 2016, CleverScan has a proven recordof increasing welding productivity and supportingon-time delivery of projects in vastly different appli-cations around the world, in Texas, the North Sea,Kazakhstan and Asia Pacific.

Turnkey solutions evolving in 2017 In late April 2017, the CleverScan family will be gearingup a level, to provide a bevel measurement solutionfor the most challenging projects. This new edition ofCleverScan features 360° bevel measurement withlaser profilometry, which is ideal for onsite welding,providing customers with optimal fit-up and guaran-teeing that all bevels are approved before welding.This new solution reinforces the reliability and accuracyof quality controls for the most demanding requests,namely Clad Pipelines and Steel Catenary Risers,where root pass welding is highly impacted by thequality of the bevel itself.


CleverScan is a laser profiling and user-friendly software solution, designed by Serimax to ensure a trouble free sorting and fit-up of your pipes, providingthe best welding results, whatever the application.

The smart digital technologyfor welders, by Serimax

#09

/...

�News Focus The tech files Solutions On the market Events People

saves you time and money andprotects the environment


First developed in 2000, to comply with OSPAR1 recommendations for the North Sea,CLEANWELL® was designed to replace the most commonly used thread compound, APImodified dope, which contains heavy metals. Regularly upgraded and improved,Vallourec’s latest development of CLEANWELL® DRY 2 goes well beyond the replacementof thread compounds. CLEANWELL® DRY 2 is applied directly at the mill after machining the threads: it reducespipe handling operations, rig running time, the environmental impact and improves rigsafety. Whatever the conditions - offshore and onshore, in low temperatures of the arcticor high temperatures of the desert - CLEANWELL® DRY 2 is leaner, faster, cleaner andsafer than traditional thread compounds.

CLEANWELL® DRY 2 multi-functional coating technology

is specifically developed for VAM® connections to replace

both storage and running compounds (dope). Applied

directly in Vallourec mills on the surface of pin and box

threads of VAM® connections CLEANWELL® DRY features:

• Anti-corrosion and anti-galling metal plating on pin and

box to protect the steel from corrosion along the product

life and improve its anti-galling performances

• A soft wax-type lubricant coating on the box for increased

running performances.

Metal

BOX

PIN

Metal Metal Aloy PlatingAnti-Galing & Anti-Corrosion

PassivationAnti-Corrosion

Special Solid CoatingLubricating Layer

1 - OSPAR Commission to protect the North East Atlantic and its resources www.ospar.org/work-areas/oic

For over ten years, Mr. HELP has been supportedby technicians and R&D specialists, who have ans-wered thousands of technical inquiries related tocommon topics, from make-up to running, from pipematerials to connection performance. Vallourec'splatform has grown immensely popular amongst cus-tomers, both end-users and OFS, around the world.In some instances, however, questions go beyondthe common, requiring preliminary studies, designoptimization or analysis to assess and reinforce wellintegrity. In response to customer expectations forsupport in more complex and challenging projects,Vallourec launched ‘VAM® Engineering Services’.While ‘Mr. HELP’ remains focused on routine inquiries,‘VAM® Engineering Services’ can provide made tomeasure engineering studies. Access to both plat-forms is seamless and VAM® users can find a gate-way to VAM® Engineering Services through Mr. HELP.

To improve well integrity and optimize performanceOil & Gas operations have grown increasingly complexover the years, as well as more demanding with strin-gent quality assurance requirements. Questions byVAM® users now call for deeper expertise by VAM®

engineers, from design(accessory design vali-

dation, performancecalculation, well opti-mization) to post-ope-

rations analysis (destructive or non-destructive testingfor used parts). Renaud de Lapeyrière, VallourecGlobal Solutions, Development Director, explains:"You see, each well design is unique, involving a greatnumber of items, casings, connections and acces-sories that don’t just need to fit together, they needto be 100% compatible, offer perfect sealing, andshare the same mechanical properties". Vallourec hasbrought together resources from its R&D centers andtesting facilities, into this innovative VAM® EngineeringServices platform. This Premium technical supportsolution provides a quick, comprehensive range ofexpertise at cost-effective rates.Charles Dubourg, Services Business DevelopmentManager, continues: "Accessories, for instance, arenot traditionally manufactured by Vallourec but theymust have the same performance levels and technicalproperties as the OCTG items. Our engineers havethe competency to review well and accessory designsand assist in optimizing dimensions or parameters,especially for threads and interfaces."

To save time and moneyRenaud de Lapeyrière adds: “In particular cases, cus-tomers need to evaluate the lifespan of a well, or assessrisks linked to ageing. In an old well, which has beenproducing for decades, the customer may want toknow if they can extend the well life and safely producefor an additional period of time with the existing infra-structure. Based on data collected in the well, VAM®

experts can generate FEA (finite element analysis) simulations of mechanical constraints, with tests anddrawings, to assess the actual levels of mechanicalresistance following corrosion or deterioration of VAM®

connections and associated pipes.” Charles Dubourg emphasizes: “When we work toge-ther from a project's earliest stages, well optimizationcan allow the customer to save time and money.”With already over 100 advanced studies handled byVAM® Engineering Services, Vallourec is ready to helpyou reduce installation time, increase safety, enhancequality and improve well integrity.

www.vamservices.com/support/help.aspx



Antoine Deroubaixand Maurin Duquenne,R&D engineers basedin Aulnoye-Aymeries(France), provide customer support andproduct design for VAM®

Engineering Services.

In the past decade, operators with general questions about VAM® connectionsand Vallourec pipes have grown fond of ‘Mr. HELP’, relying on the free web-basedtechnical support platform for quick answers. Today, Vallourec is going one stepfurther, with VAM® Engineering Services, designed to bring in-depth, answers tomore specific questions and issues, at the heart of engineering and design.

VAM® Engineering Servicesfor support beyond the pipe



ling operations and associated risks are reduced. The

pipe thread and seal is clean and easy to inspect.

Reduced environmental impactAPI modified dope contains heavy metals which are

hazardous to health and the environment. Whilst alternative

compounds are available they present two major draw-

backs:

• higher galling sensitivity on grades such as 13Cr, Super

13Cr and corrosion resistant alloys.

• poor sealability performance of the connections at tem-

peratures above 170°C.

Unlike other thread compounds, CLEANWELL® DRY 2 is

a corrosion-resistant, anti-galling metal plating which is

applied at the mill. There is no discharge and no environ-

mentally hazardous material. It is fully compliant with the

latest recommendations of the OSPAR commission, sui-

table for use in environmentally sensitive areas.

Corrosion resistanceA large number of tests were performed to measure the cor-

rosion resistance of CLEANWELL® DRY 2 in the most severe

environments. These accelerated lab test in critical condition

validated temperature range from -60°C up to +70°C.

• The VDA 233-102 testing method alternates salt spray,

humid and freezing phases with high moisture and

thermal cycling during 8 one-week cycles. It generates

high corrosivity and high internal stresses at the sub-

strate/coating interface.

u VAM® 21 CLEANWELL® DRY 2 performance was

excellent, with no sign of corrosion after 8 weeks

of accelerated corrosion

VAM® 21 CLEANWELL® DRY 2

after VDA 233-102 testing

• The Gazprom test involves testing connections to thermal

shocks (down to -60°C) and to high temperature/pressure

water-jets to simulate behavior of frozen connections

u Climatic tests confirm that CLEANWELL® DRY 2 is

not affected by cold and can be used in extreme

low temperatures, down to -60°C.

storage lifetime Two sites were selected to replicate field exposure and

long time storage in the worst case conditions.

• Dunkerque was selected due to its corrosive urban

marine atmosphere and temperate climate (category

C3 according to the ISO 9223:2012 standard).

• Dubai was selected for its dry and very hot climate.

VAM® 21 CLEANWELL® DRY 2 pin

after 24 months storage in Dunkerque

u After more than 2 years exposure, the threads are

in excellent condition. The storage test is still on-

going to determine the full product lifetime.

u CLEANWELL® DRY 2 can be stored for more than

2 years whatever the conditions without deterio-

ration. It proves that CLEANWELL® DRY 2 is totally

rig ready and does not require any maintenance

during storage.

#09OpERAtiONAL sAviNgs iN thE YARD

CLEANWELL® DRY 2 has been designed to totally replace

storage and running compounds, simplifying the storage

operations even in challenging climatic conditions. Thanks

to its proven corrosion resistance properties, the con-

nection can be stored for more than 2 years on a yard

without specific maintenance requirements.

1. Remove thread protectors and

storage compound

2. Inspect connection thread

3. Re-apply storage compound

and thread protectors


storage compound


3. Re-apply storage compound

and thread protectors


storage compound

2. Apply running compound and

re-apply thread connectors

1. Remove running compound


3. Reapply storage compound

and thread connectors

Thread inspection

at pipe delivery

(≈ 10% of

delivered pipes)

Periodic thread

inspection

(≈ 10% of pipes

every 6 months)

Thread

preparation

before sending

to rig

Rig returns

storage yard

operationsOperational Savings

& BenefitsCLEANWELL® DRY 2Standard Compounds

Remove thread

protectors and inspect

connection thread

Remove thread protectors

and inspect connection

thread

Can be stored for up to 3 years

without specific maintenance

Rig ready

Rig ready

l No need for storage and

running compounds

l Reduced

water treatment,

waste management

and disposal costs

l Faster make-up

l Less manual pipe

handling

l More consistent

and reliable

l Cleaner

l Environmentally friendly:

Classified GREEN by

OSPAR

l Easier management

of rig re-turns

OpERAtiONAL sAviNgs ON thE Rig

By replacing the need for running compounds, CLEAN-

WELL® DRY 2 delivers significant operational advan-

tages to reduce rig time and generates important cost

savings. We estimate that running time can be reduced

by 20% compared to standard VAM® connections.

Reduced reject and back-out rate With CLEANWELL® DRY 2 make-up operations are more

consistent, improving the make-up rate at first attempt

from a typical 97% to 99% (including back-out and rejects).

Non productive time related to failed make-up is reduced.

• By applying CLEANWELL® DRY 2 at the mill, Vallourec

is able to standardize the process and ensure the quality

of the product

• CLEANWELL® DRY 2 metal plating has very strong resi-

stance to galling, whatever the steel grade

Make-up graphs are much more repeatable: no risk

related to application of too much or too little dope (too

little dope leads to lack of lubrification and risk of galling,

too much leads to dope pressure and unacceptable

make-up graph). With CLEANWELL® DRY 2 the connec-

tion can be used even if contaminated with mud, water

or dope.

Faster make-up Casing connections with CLEANWELL® DRY 2 can be

made up at up to 30 RPM compared to 10 to 20 RPM

for conventional connections. “This outstanding perfor-

mance is achieved thanks to the unique engineering of

the CLEANWELL®

DRY 2 coating which protects the

metal surface of the connection to prevent galling wha-

tever the grade” says Thibault Mathon, R&D leader in

charge of CLEANWELL® DRY 2 development.

improved well productivityRemoving the use of running compounds eliminates pro-

blems such as equipment plugging and formation damage

caused by using too much or too little dope, thereby

improving the overall productivity of the well. This is par-

ticularly important for highly deviated wells and wells using

ICD (Inflow Control Devices).

improved safetyWith CLEANWELL® DRY 2, operators provide safer and

cleaner workplaces for the rig crew. By removing the need

for storage and running compounds, CLEANWELL® DRY

2 ensures that the rig site is cleaner and safer. Pipe hand-

CLEANWELL® DRY 2 is available on vAM® 21

All grades: Carbon steel, 13Cr, Super13Cr and CRA

Same sealability performance as VAM® 21 standard:

- API RP 5C5 2017 CAL IV

- Connection performance envelope same as the pipe - 100% VME

Full compatibility with standard connections for all sizes

Pin Box

With thread protector

Without thread protector

tEstiNg


News Focus The tech files Solutions On the market Events People #09sealability testsIn order to validate the sealability performance of a

connection, the reference standard is API RP 5C5 4th

edition - 2017 - Procedure for testing casing and tubing

connections. It is currently the most demanding qualifi-

cation available, certifying premium connection perfor-

mance. This protocol guarantees the sealing of the

connections by testing complex combinations of loads

to simulate extreme downhole situations. This revised

edition requires most of the tests to be carried out at high

temperature.

The VAM® 21 full product line with CLEANWELL®

DRY 2 is qualified to API RP 5C5 2017 CAL IV:

• First, the most critical sizes for sealability were

identified by FEA (Finite Element Analysis): this

was done by comparing computed sealability

criterion on each product line OD / thickness /

grade.

• Second, a series of physical tests as per API

RP 5C5 2017 CAL IV protocol were performed

on the most critical sizes of VAM® 21 with

CLEANWELL® DRY 2.

u All validation tests were successful and

demonstrated that CLEANWELL® DRY 2

does not alter the product sealability perfor-

mance, even at high temperature. Technical

reports are available upon request.

Make-up and break-out tests In accordance with API RP 5C5 to evaluate the anti-galling

performance of connections under lab conditions, a mini-

mum of 3 make-up and break-out (M&B) are required on

casing without reject, and 10 M&B for tubing. CLEAN-

WELL® DRY 2 was tested up to 5 M&B for casing and 15

M&B for tubing.

No dope or lubricant was added, and even after 15 M&B

the connections were still acceptable for further make-

up. The threads were in perfect condition.

u CLEANWELL® DRY 2 showed make and break perfor-

mance far above API RP 5C5 requirements demon-

strating its capacity for faster and more reliable make

up.

Rig tests and field testsRepresentatives from major and local oil and gas com-

panies were invited to attend rig tests in Stavanger, Norway

to witness the performances and the benefits of the new

CLEANWELL® DRY 2 coating optimized for VAM® 21 con-

nections.

During the operations at the rig, VAM® Field Service tech-

nicians conducted a series of trials pushing the limits of

the VAM® 21 with CLEANWELL® DRY 2 demonstrating

the excellent make-and-break performances and the

robustness of the solution in different configurations.

Most participants agreed that the combination of CLEAN-

WELL® DRY 2 with VAM® 21 will reduce the environmental

impact, improve the running efficiency by avoiding cleaning

and doping operations and will in addition solve various

dope related issues.

More rig demonstrations are scheduled for 2017. Please

contact your Vallourec sales representative if you wish to

attend.

CLEANWELL® DRY 2 usage on the fieldOver 4 million feet of CLEANWELL® DRY have been run

since 2005. Onshore or offshore, in freezing cold or un

bearably hot operating environments, the running per-

formance has always exceeded customer expectations.

u Field proven benefits

According to VAM® Field Services, the back-out and

reject rates of VAM® 21 CLEANWELL® DRY 2 are divi-

ded by 2 when compared to VAM® 21 standard (dope

version).

• Totally dry and non sticky

• Clean: no plugging, no discharge

• No galling

• Corrosion resistant

• Excellent lubrication properties in hot or cold environments

• Ensures perfect sealability of VAM® Connections

• Reduces handling, improves safety

• Environmentally friendly

In summary, the main advantages of CLEANWELL® DRY 2 are:



In all operations, Vallourec has developed leaner management,smarter and faster solutions, simpler execution, dynamic andcost-efficient approaches. Vallourec's answers have grownto adapt to all oil & gas priorities: rig-ready products, with yardmanagement that includes all connections and accessories,as well as threading, inspection and VAM® Field Services fordrilling and OCTG. For offshore projects, Vallourec deliverscoating, reeling, on-vessel welding, field joint coating, all forreduced line pipe-laying time with record low repair rates,ensuring saved time and costs. Vallourec's Global Solutionscan meet client expectations through a vast network of facilitiesand partners worldwide. These very concrete services areadapted to the specifics of each area or project profile andinclude One Stop Shops, spoolbases, well coordination, service hubs and licensee networks that offer service capa-bilities from the mill to the well.

Customer services worldwide Vallourec has set up One Stop Shop capabilities throughoutthe world, bringing together a wealth of services in a singlespot in response to customer requirements. Every hub hasits own specialties and accommodates services for drilling,OCTG or line pipe, working in synch with customers, oftencoordinating with partners and suppliers to facilitate informationflow, simplify the supply chain, ensure the highest quality andsafety while improving efficiency. Gathering all parts andaccessories in a single location and conducting testing,inspection and shipping in a single rational way means thecustomer gets exactly the parts he needs with rig-ready orlay-ready solutions that improve execution, decrease rig orbarge time and save costs. Vallourec has One Stop Shop

capabilities from its own proprietary sites as well as throughpowerful local players. Whether in Europe and Africa, theMiddle East and Asia, in North and South America, Valloureccan deliver world class solutions.

One Stop Shop capabilities in Europe and the Middle EastVallourec has developed One Stop Shop services in theNetherlands, with partners and service providers to managethe complete drill string lifecycle for customers. Everythingessential to preparing the drill pipe for its next operation;inspection, re-hardbanding, rethreading and accessories,is available in one place at the lowest cost. With over 50years of experience in the Netherlands, Vallourec can offerthe highest standards of quality and fast delivery, constitutingone of the most reliable options in Europe for new and repaired equipment. Vallourec has now set up a similarbase of operations in Abu Dhabi. Abdias Alcantara, ServicesBusiness Development Director for Vallourec DrillingProducts said: “We get praise for how fast we can do thejob. Customers can send us a truck with a piece to repairand they are able to drive back to the field with the repairedpiece the same day.” In addition to our services, Vallourecoffers a variety of drilling accessories and yard managementfor inventory. The One Stop Shop is adaptable to all projectsand client orders, guaranteeing improved supplier scheduleand coordination.

One Stop Shop in Vitôria, BrazilIn Brazil, Vallourec has set up a vast One Stop Shop facilityin Vitôria, very close to the coast, which brings together

seamless pipe supply (from the Belo Horizonte - Barrieroand Jeceaba sites), large diameter welded pipe and coatingfacilities from TSA and welding expertise from Serimax, toanswer all customer needs for onshore and offshore linepipe projects.In addition to anti-corrosive pipe coating and thermal insu-lation, the Vitôria site can provide welding qualifications,double jointing and field joint coating.Hildeu Dellaretti Junior, Projects SalesDirector at Vallourec Brazil, explains:"Here's an example of value creation:we are answering client expectationsby offering 24.4-meter long pipes withdouble jointing instead of the traditional12.2-meter long pipes that the contrac-tor would have to weld and coat on thebarge or at its spoolbase. We help save50% of field joint coating (FJC), whichis a critical path of the operation, reducevessel operating time, increase qualityand inspection levels, and considerablymitigate risks. For welding, we are nowseeking a single welding qualification,at a spoolbase for instance, to furthersimplify and enhance our offer". DiegoAlmeida, Marketing Coordinator at Vallourec Brazil, continues: "By reducing spoolbase operation time and eliminating 50% of FJC, for example, we are reducing customer TCO, but, more importantly, we are deliveringsolutions with increased flow assurance and productintegrity."

Vallourec's One Stop Shop Brazil is growing to include com-plementary services, yard and pipe management, andadvanced project management.

A powerful hub in Batam, South-East Asia At the other end of the world, in Batam, just across from

Singapore, Vallourec P.T. Citra Tubindo (PTCT) hasgrown into a world-class partner of Vallourec, offeringglobal solutions throughout the Asia Pacific area. FromPTCT’s facilities in Batam, Indonesia, Vallourec canprovide heat treatment, thread VAM® premium con-nections and oil-field accessories and provide a widerange of services and logistics solutions to cover thetubular needs of Oil & Gas customers. In addition toOCTG, the scope of services has expanded vastlyto include global solutions for linepipe projects.Amongst the services offered by Vallourec and PTCT,we find a full range of non-destructive testing facilitiesincluding a new ultra-sound test bench to ensure100% quality control. Last but not least, Vallourec canhandle all the yard management logistics for optimal customer storage and shipping organization.

Serimax delivers powerful solutions around the worldAs the challenges faced by customers worldwide constantlychange, Serimax continues to innovate, developing and apply-ing new technologies and processes which meet these challenges head on. Its spoolbase operations at Evanton inthe UK, Orkanger in Norway, Mobile in the USA and Dande

Vallourec has developed a vast array of Global Solutions over the years, both tooffer high value services and to reduce operators’ total cost of ownership (TCO).Customer convenience is at the heart of these services which can include yard operations, logistics and coordination, threading, testing and inspection, coating

and welding, designed to deliver quality and time saving solutions, beyond tubular products.

Vallourec Global Solutions


Making our customer’s life easier

Globally, our One Stop Shop can speed

up onshore and offshorefabrication, providing

extra manufacturing andscores of intermediary

enhancements and inspection protocols,

reducing project executiontime for the operator,and accelerating time

to first oil.Diego Almeida

‘‘

‘‘



Oil & Gas companies are looking for the most efficient technicalsolutions to reach deeper wells, ensuring well integrity whilecutting costs. Amongst Vallourec's Global Solutions, well coor-dination involves the preparation of a complex array of tubulargoods, connections, accessories and services at a singlepoint, managing information flow to ensure timely delivery,yard logistics, quality control and synchronized schedulingacross the supply chain. Vallourec Tube Alloy delivers a full range of accessories, spe-cifically developed to meet the challenging demands of com-plex offshore Oil & Gas projects, initially in the Gulf of Mexico,and more recently in south-east Asia, with a newly openedfacility in Singapore.

From the mill to the well: quality and customer intimacyWhile VAM® connections are renowned for their reliability andperformance, they are high tech products that must be properlyhandled, transported, stored, installed and sometimes repaired."No one knows VAM® like VAM®", says Chris Hebert, SalesDirector, North America, Vallourec Tube Alloy. "That’s one ofthe reasons customers have entrusted us to integrate moreand more services upstream and downstream from the manu-facturing to the running, from the mill to the well, beyond pipesand connections." Vallourec Tube-Alloy sought a logisticssolution and partnered with Offshore Energy Services to easesome of the challenges across the entire value chain with anintegrated solution, from its strategic location in Houma,Louisiana, just an hour away from the biggest offshore basesin the Gulf of Mexico. "Vallourec has developed a new levelof customer intimacy," as Todd Davies, Account Manager atVallourec Tube Alloy, explains: "I'm communicating with all our

partners, on a daily basis, to coordinate operations: we'retalking to end users, OFS, distributors, trucking companies,supply chain groups, completion and drilling engineers, aswell as field service and technical support teams. This bringscustomer intimacy to a whole new level: in barely 7-8 years,we have really grown into well coordination specialists."

Guaranteeing well integrity and lowering costsChris Hebert continues: "We're helping our cus-tomers lower their TCO in very concrete ways.We look for hidden costs or costs associated totransportation, transactions, intermediaries, redu-cing the number of touches for a single part andany redundant operations. For transportation, forexample, we have cut down mileage, redrawnroutes, optimized truck loads; trucks are spendingless time on the road, which means increasedsafety and reduced transport liability. We've cutour carbon footprint by 30% and achieved a near50% reduction of transportation costs. For inspections, we'vegone from multiple inspections at different sites to a singlecrew, at a single location, just before final delivery. We havesimplified access to products and services, by managing thecoordination off one single desk. In addition, we've improvedthe utilization of customer inventory: this year alone we havebeen able to reduce storage goods by 75%. We're probablyat $750,000 savings using inventory goods that had beensitting around for about a year." Vallourec Tube Alloy is part ofthe Global Solutions strategy of Vallourec and is still exploringfurther possibilities to optimize time, standardize all pre-rigoperations, and reduce costs.

Today, Vallourec Tube Alloy delivers more value than ever. Well coordination guarantees saved time and lower total cost of ownership (TCO).

Spotlight on well coordination services

in Angola provide tremendous reeling capability. On-vesselwelding capabilities for J-lay and S-lay provide the most cuttingedge technologies with the lowest repair rates in the world.Serimax offers specialized welding solutions for high gradesteels which are used in some of the most challenging ultradeepwater or arctic environments. Our global welding solutionschange the game for complex offshore projects and definitelysave execution time and costs for our customers.Whilst research and development teams design and createinnovative solutions to support next-generation opportunitiesfor Oil & Gas exploration and production, our engineers andtechnicians ensure that our on barge execution and reelingcapabilities are efficient and cost-effective to meet the chal-lenges our clients face today - and tomorrow.

Ready for the future Vallourec's Global Solutions and One Stop Shop capabilitiesbring us closer to the customer. Our offer now far exceedscustomer expectations as we deliver so much more. With

projects that are particularly cost and time sensitive in today'sharsh market conditions, it is paramount to provide solutionsthat make the customer's life easy and trouble-free. Valloureccan provide answers from a very early stage, for well andaccessory design, all the way to well completion. We haveproven our proximity capacities by setting up local threadingfacilities in Africa, double-jointing bases in Europe and Brazil,for example, or by partnering with TechnipFMC and managingtheir spoolbases. We have developed lean and efficient yardmanagement by encompassing all assets within a samelocation, minimizing handling and transportation costs. Ourexpertise aims at ensuring well integrity and lower TCO: atthe heart of our products and services, you will always findquality and safety. “This is why Vallourec can best manageyour tubes, connections, and services from the mill to youryard, and all the way down your wells and strings”, says DidierHornet, Senior Vice President, Development & Innovation.“Vallourec knows how to handle, prepare and deliver so yourexecution on the rig is quick, smooth, safe and efficient.”

Global SolutionsOne Stop Shop capabilities • Yard & inventory management• Testing & Inspection• Maintenance & repairs • Rig prep & rig return • Threading & accessories • Coating & double jointing

Customer benefits• Pre-project organization and planning• Easier Project Management & Execution:

- Optimized schedules - Transport and yard sychronization - Supplier coordination - Better product integrity- Better product preparation

• Better vision • Better cost control • Risk mitigation • Lower Total Cost of Ownership• Operators can focus on core activity

Welding services • Spoolbase management • Double joints • Field Joint Coating• Reeling • J-Lay, S-Lay

VAM® Licencee network • Threading • Accessories • VAM® Field Service

Vallourec Global Solutions Footprint

North America

We've cut our carbon footprint

by 30% and achieved a near 50% reduction

of transportationcosts.

‘‘

‘‘

High tech products must beproperly handled,transported, stored, installed and sometimesrepaired.

One Stop Shop capabilities

Serimax Operated TechnipFMC Spoolbase

VAM® Field Service & Licensee network



By combining three innovative features, Vallourechas developed a completion landing string whichoffers large drift diameter, high working pressure, andhigher gas tightness performance, thanks to the VAM®

Express-M2MTM connection.A completion landing string is generally an assemblyof seamless pipe with gas tight connections used indeep offshore wells for diverse operations, such assending instrumentation downhole, performing welltesting, and for other completion and interventionoperations at different times during the lifetime of thewell. The most important function of the landing stringis to provide a gas-tight conduit between the seabedand the platform, where tools can be lowered andfluids circulated. Using a completion landing stringalso allows operators to perform pre-analysis ofhydrocarbons, to evaluate the value of completingthe well. These operations are, by definition, complexand expensive, so operators are continuously seekingsolutions to improve their economic and operationalperformances.

Large drift diameterThe latest technical requirements for completion lan-ding strings require the drift diameter to reach a mini-mum of 6 in. to retrieve the BOP plug. Vallourec’s pre-mium forged pipe PFPTM manufacturing technologymakes it possible to produce integral shaped pipewith a variable outside diameter, preserving the metal-lurgical integrity of the pipe by getting rid of the weld.The higher tensile capacity achieved by forging allowsus to offer larger outside-diameter pipe (7 5/8 in. ver-sus 6 5/8 in.) with flush inside diameters (up to 6 1/4in.) without having to reduce the inside diameter tocompensate for the weld. This large internal diameter

reduces the pressure and hydraulic horsepower requi-rements for circulating drilling fluids, viscous pills andcement and thereby optimizes hydraulic performance.

Gas-tight connectionThe VAM® Express-M2MTM connection is a drill pipebased, double-shoulder, gas-tight connection witha metal-to-metal rotary seal technology. This dou-ble-shoulder connection distinguishes from otherdouble-shoulder connections because of its highertorque capacity, which averages 150% to 200% morethan an API connection. The VAM® Express-M2MTM

provides the highest gas-tight operating envelope inthe industry; qualified up to 30,000 PSI internal pres-sure and 25,000 PSI external pressure.

Cost benefitsDrill pipe based landing strings are more cost effectiveto run compared to alternative solutions, becausethey are compatible with conventional drill pipe hand-ling equipment. Additionally, they are faster to make-up, more resistant, resisting up to 100 make andbreaks, and they can be used for drilling if needed.The weld free design, reduces production time andcost compared to welded ormachined assemblies. The combination of these fea-tures provides operators anddrilling contractors with a costeffective and flexible solutionto use the same tubular stringfor both drilling and comple-tion operations, without com-promising performance orsafety.

To better address operator requirements for completion landing strings, Vallourecdeveloped a drill pipe based solution which offers improved performance and costbenefits when compared to existing systems.

Forged completion landing string addresses industry challenges

possible

Wemakeoptimization

the step from innovation to cost

By co-designing the pipe solutions from the start of a major o! shore oil development project in Ghana, Vallourec demonstrates its ability to anticipate its clients’ requirements and constraints. The Group not only supplies non-standard pipe dimensions to optimize pipe-in-pipe design, it also leads complex operations such as coating, double-jointing and logistics. Thanks to its unique and e" cient project management approach, Vallourec ensures smooth execution, risk mitigation, and lower cost of ownership. Vallourec contributes to making all your projects possible, wherever you need us, whenever you need smart tubular solutions. vallourec.com

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VAM® Express-M2MTM connection.


A new milestone forVallourec Umbilicals

Advanced premium solutionsfor geothermal energy projects

In 2016, TechnipFMC successfully assembled umbilicals using 130km of seam-welded super duplex tubes for Total’s Glenlivet project in the North Sea.

The Glenlivet project was the first real world trial forVallourec's welded tubes for umbilicals following a four-year qualification program by Total’s E&PTechnology Department. Vallourec delivered 130km oftubes to TechnipFMC Umbilicals to be assembled toform the static Glenlivet umbilical. The innovative productis acknowledged to be a breakthrough for the SURFindustry with excellent performance in all qualificationtests: The tubes are lighter, with high performancemechanical characteristics that are particularly adaptedto deep and ultra deep waters, with a high level of fati-gue resistance.Vallourec understood that subsea systems for deepand ultra-deep offshore projects were becoming moreand more demanding and that applying the most com-mon solution, using thicker tubes, was not an optiondue to the impact on price, weight and fatigue. By providing the client with laser welded umbilical tubes,seam welded along the entire longitudinal length,Vallourec Umbilicals was able to reduce the wall thickness, thus saving considerable weight. Supportedby Serimax for the development and qualification ofboth longitudinal laser welding and butt weld orbitalGTAW welding procedures ensured that Vallourec’sseam-welded super duplex tubes for umbilicals reachedunprecedented quality.

Stringent qualification process“The qualification process was extremely stringent, morethan 11,000 tests were undertaken before qualification”,declared Stephan Chrobot, Managing Director ofVallourec Umbilicals. “As it is a totally new, innovativesolution, there is no margin for error. Total needed to be100% sure that the new product corresponded perfectlywith their requirements”. For Jean-Philippe Roques and Henri Romazzotti, engi-neers at Total, the choice of Vallourec Umbilicals wasclear: “We wanted a technology that was more pertinentin terms of mechanical properties and capacities. Thesetubes go well beyond: the tubes are finer and less rigid.Furthermore, they provide an important benefit in termsof cost. It’s an excellent product that fulfils all our expec-tations.”

Next steps Today, Vallourec Umbilicals has two production linesand 20 employees, but a second project order placedthis year calls for investment in a third production lineand additional recruitments. “We have moved from thestart-up to the growth phase of our develop-ment,” said Stephane Chrobot adding, “I amconfident for the new orders and projects forthe future”. Vallourec tubes for umbilicals are specificallydesigned to withstand the toughest environ-ments and operating conditions. Serimax wel-ding engineers are supporting the secondproject order and providing the welding qua-lification procedures. In this way, Valloureccontinues to offer innovative and cost-efficientsolutions for all SURF markets.

The Holy Grail of engineering: a product that

is lighter, stronger and more

cost efficient to fabricate…

From left to right: Henri Romazzotti (Total), Stéphane Chrobot and Eric Poupart(Vallourec Umbilicals), Jean-Philippe Roques (Total).

Umbilicals transmit power, chemicals and communications fromsurface controls to subseainstallations.


Geothermal energy projects use the thermal energygenerated and stored in the core of the earth's geo-logy to generate electricity. Using production wells toextract steam and hot water out of the ground andbring it to the surface, thermal energy is transferredeither to a domestic water network to heat homes ortransformed into electricity and transferred to thepower grid. Once the heat energy has been used,the water is reinjected into the reservoir though aninjection well.

A virtuous energy cycleHowever, geothermal well profiles are challenging.Concentrated at the edges of the earth's tectonic plates,the extremely hard and abrasive rock formations createhigh torsion levels and equipment wear, even worse thanconventional oil & gas drilling. High temperatures, highpressure and the presence of hydrogen sulfide are justsome of the challenges of geothermal wells. In 2016, Vallourec supplied premium OCTG for thegeothermal plant in Holzkirchen, Bavaria, Germany.This project involved drilling two wells to a depth ofnearly 5,000 meters, with temperatures over 180 °Cand external pressures up to 743 bars.

This year, Vallourec will assist FonrocheGéothermie, the leading French companyin high temperature geothermal energy, inthe exploration phase of the undergroundreserves in Alsace. The project will consistof two to four wells drilled in doublets (oneinjection well and one production well)requiring premium tubes and connectionsincluding VAM® 21TM, the highest perfor-ming premium connection on the market.A team of VAM® Field Service technicianswill supervise the on-site descent. The dril-ling of the first well is expected to begin inJune 2017. Geothermal plant projects are developingaround the world, confirming the rise inthis technology for producing electricityfrom green energy. Today, only 6 to 7%of global geothermal energy is in use, butthis is expected to grow fivefold for elec-tricity production and two-fold for urbanheating by 2030. Vallourec is positionedas the leading partner in this new environ-ment friendly market.

Vallourec is committed to developing technicalsolutions for renewable energy. This is clearlyillustrated through the recent awards to supplypremium tubes and connections for twoimportant geothermal energy projects in Europe.


Our tubes can cope with thehighest mechanical and thermalloads, because they are made fromsteels specially developed for the

energy industry, and in additionwe use VAM® premium connec-tions for the tube strings.

Markus Renner, Sales Director OCTG Europe

‘‘ ‘‘


News Focus The tech files Solutions Strategy Events People

Over the past two years, Vallourec has undertaken a profound

transformation plan. Through the structural reduction of its cost base,

the Group has developed into a global, leaner and more competitive

organization, with a balanced industrial footprint, close to its strategic

markets and customers.

Vallourec Stronger and more competitive

Within the framework of this transformation, innovation

remains more than ever a path to progress and suc-

cess. As a market leader, Vallourec is committed to

innovative new products, services and solutions

to support customers for all their tubular needs.

Developing sales and new growth drivers across the

entire range of Vallourec’s offer, is a key objective. The

new organization is structured around 4 regions, each

with their own commercial and industrial operations.

The global growth strategies for all product lines and

the development of the Group’s industrial footprint,

will be organized across two new central departments:

Development & Innovation (D&I) and Technology &

Innovation (T&I).

Europe and AfricaOur European production facilities offer the widest

range of tubular products in the world, including

high value added products and services. The stream-

lining of our operations preserves this expertise and

ensures competitiveness to serve both the technical

challenges of our European markets and new oppor-

tunities in Africa. You will find several examples of

our solutions in the focus article on Africa (pages

6-11).

Middle East and AsiaThe recent acquisition and integration of Tianda Oil

Pipe (detailed on page 30) gives Vallourec a highly

competitive production hub to supply the domestic

Chinese market and export worldwide, particularly

in Asia and the Middle East. With heat treatment,

threading facilities and one stop shop capabilities

across the region, Vallourec can support its customers

with a full range of Global Solutions.

North AmericaIn 2015 and 2016, Vallourec’s operations in North

America underwent significant streamlining to improve

competitiveness and adapt to the sharp fall in demand

caused by the oil price crash. As leader on the North

American market, our local production facilities are

already responding as the market recovers, providing

the flexibility and responsiveness to address customer

needs with short lead times, high value and creative

solutions.

South AmericaThe merger of its two Brazilian entities into a single

powerful unit, Vallourec Soluções Tubulares do Brasil,

provides a second highly competitive production hub

to serve domestic customers as well as worldwide

customers with high-end products and solutions.

It also highlights the strong and fruitful partnership

between Vallourec and NSSMC.

Through its bold policy and actions, Vallourec is pro-

viding new, operational and highly efficient answers

to its most demanding customers.

Hubert Paris-------------------------Senior VicePresident,Europe & Africa

EdouardGuinotte-------------------------Senior VicePresident,Middle East & Asia

Nicolasde Coignac-------------------------Senior VicePresident, North America

Alexandre Lyra-------------------------Senior VicePresident, South America

Didier Hornet-------------------------Senior VicePresident,Development & Innovation

PhilippeCarlier-------------------------Senior VicePresident,Technology & Industry

Regional, commercial & industrial management

Changzhou

Nansha

Chuzhou

Vallourec sales officeVallourec Field Services

Tianda Oil Pipe

Tianda Oil Pipe

Trading center (oil & gas)

Valinox Nucléaire (steam generator tubes for the Chinese nuclear power industry)

Beijing

Production and finishing facility of seamless pipesThreading facility of VAM® premium connections

Vallourec sales office

Shanghai Tongcheng

Zhangjiagang

Plants Sales and services




Scott graduated in December of 1997 with a Bachelor’sDegree in Mechanical Engineering from Texas A&M andsoon after he joined Vallourec. Ever since, Scott hasbeen a key team member of Vallourec Drilling Products,participating in the teams that introduced the TM2, TM4and the popular VAM® Express™. His experience andexpertise have proved invaluable for product supportand ongoing projects. His exceptional problem solvingskills and his outstanding technical input to Vallourechas contributed significantly to the success of our products.Scott explains: "Eighteen years ago, I started as a product engineer at OMSCO, which was acquiredby Vallourec in 2006. I started out as a product engineer working with product drawings and docu-mentation, moved to the Vallourec Research Centerin Aulnoye, France, working on connection R&D, thendrill string optimization, and finally moved back toHouston. Throughout my eighteen years at Vallourec, I’ve beenfortunate to work with different teams and departmentsin the United States and in France, allowing me to callVallourec not only my place of work but my family. WithinVallourec, I’ve been able to improve my knowledge tobetter advise my team and our customers. Vallourechas always supported my professional career path, helping me learn more about how our product is manufactured and used. I must say I enjoy attendingconferences and being part of committees, includingthe API, which helps me develop professionally."

Growing with VallourecScott is now an R&D expert at Vallourec Drilling Products,responsible for Drill String Engineering and product andproject support since 2010. Drill String Engineering isa service which supports high performing drill string

design for specific drilling and landing program objectives. The service focuses on providing customers with the best drill stringsolution for their specific operations.This involves listening to the custo-mer to understand the details of theirproject and operations; then gene-rating simulations with different drillstring designs to eventually providethe customer with an optimizedsolution. Thanks to this service,Scott is able to understand the customer’s challenges, spot trends,compare products, and proposethe best customized solution. Scottproves how client intimacy and trust are crucial to deli-vering value, making Vallourec a true solution providerbeyond the pipe.Drill string engineering includes tests and field trials ofmany of Vallourec’s products, including Hydroclean,Shale Drill pipe, and landing string projects. It also contributes to finding the best solutions to customerclaims. With over 150 studies made for clientsthroughout the world, Scott’s contribution has helpedour customers mitigate risks and increase reliability when choosing a drill string.

Work Life BalanceScott concludes: "When not at work, I dedicate my timeto my family, to my wife Isabelle and daughters Coline,4, and Berenice, 2. It is a wonderful and unique experience to raise my girls both in France and in theUS. It's true that my job is challenging, but giving all myattention to the girls can take up just as much energyand patience!"


I’ve been fortunate to work with

different teams and departments

in the United Statesand in France,

allowing me to callVallourec not only my place of work

but my family

ScottGranger,R&D engineer at VallourecDrilling Products

‘‘‘‘

The acquisition of Anhui Tianda Oil Pipe marks an important milestonein Vallourec’s Transformation Plan and represents a major step change toVallourec’s international industrial footprint.

Vallourec has been working closely with Tianda eversince the acquisition in 2011 of 19.5% of its share capital.The opening up of the Chinese market to foreign inves-tors and the recent modification of its steel policy enabledthe company to go even further and in January 2016,the acquisition agreement between Tianda and Vallourecwas reached. On 23rd November 2016, the Group cele-brated the successful completion of the acquisition withan official ceremony in Chuzhou. Tianda’s industrial assets include a state of the art PQF*rolling mill with 550kt capacity as well as heat treatment,threading and testing facilities. The company has 1,500employees. From the start of the partnership with Tianda, Vallourechas operated as the exclusive distribution channel forTianda OCTG exports and for hollows for premium con-nections. Now, Vallourec has put in place an integrationtask force to improve its industrial performance and to

bring Tianda in line with Vallourec’s standards in termsof safety, quality and on-time delivery.

A qualified product lineTianda has already obtained major qualifications fromChinese customers such as SINOPEC, CNPC orCNOOC and major operators and national oil companiesincluding TOTAL, SHELL, KOC, ADCO, Repsol, PDVSAand PTTEP. A detailed plan has been established todevelop the portfolio of customer qualifications for the full range of products over the next three years. Inaddition to OCTG from Tianda, Vallourec will offer VAM®

premium connections from its threading facilities in Chinaand Indonesia. Tianda will also offer line pipe to custo-mers and international distributors such as Van Leeuwenand TC Gulf. The integration process at Vallourec is always conductedwith respect of local cultures, building upon the expertiseof local management and employees. “The integrationof Anhui Tianda Oil Pipe fulfils a long-term strategic vision,”said Edouard Guinotte, in charge of the Middle East andAsia Region. “By combining Vallourec’s leadership inpremium solutions with Tianda’s highly competitive ope-rations, we are able to offer a wide range of competitiveproducts that are perfectly suited to our customers’ needsand challenges”.

Strengthened presence in China

* PQF = Premium Quality Finishing technology

5production

sites

+ 2,000employees

550 ktcapacity

seamless steel tubes

Thanks to its unique range of expertise, Vallourec provides fully integrated solutions, along with a commitment to lowering its customers’ Total Cost of Ownership. Its solutions include all the goods and services needed to enable each project, from conception to completion and beyond. Whether it is well design, supply chain management, yard management, fi eld assistance, repairs, or training, Vallourec Global Solutions guides its customers through every step of the value chain by o� ering high added value solutions that allow cost savings for operators. With its highly skilled teams available 24/7, Vallourec contributes to making all your projects possible, wherever you need us, whenever you need smart tubular solutions. vallourec.com

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focus new frontiers and powerful solutions for africa … vallourec oil & gas magazine n 09 /...

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