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Vallourec wins major contract for pre-salt field Mero 1 in Brazil

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Oilfield Technology,

Vallourec Soluçoes Tubulares do Brasil has been awarded a contract by TechnipFMC in Brazil to supply around 12 000 t of seamless steel rigid line pipe with outside diameters 8 in. and 10 in.

The pipe will be used in the fabrication of the riser and flowline system for interconnecting 13 wells (6 production wells and 7 water alternate gas injection wells), to be installed in the pre-salt field Mero 1, which is part of the giant Libra reservoir. Libra covers an area of 1550 km2, equivalent to the size of the Brazilian city of São Paulo, with recoverable reserves estimated in the range of 8 to 12 billion bbls.

The Libra Block has been developed under a consortium agreement with Petrobras (40% share) as operator, and with Shell (20%), Total (20%), CNOOC Limited (10%), CNPC (10%) and Pré-Sal Petróleo – PPSA (state owned company, manager of Libra Consortium contract) as the other consortium partners.

The Mero field is located around 180 km off the Rio de Janeiro coast, in ultra-deep waters and has high quality carbonate reservoirs with expected high well productivity.

“We are very proud to be taking part in this major oil development, which is strategic for Brazil and for Vallourec. The award reflects the value of our integrated solution for rigid riser and flowline systems for ultra-deepwater fields. This contract confirms that the strategy implemented by Vallourec to provide the clients with rigid line-pipe solutions is appropriate. We understand the market has reached an inflexion point where the demand for rigid risers will increase. At such depths and distance from the shore, rigid line pipe offers the most sustainable solution for the lifetime of such projects” declared Alexandre Lyra, Senior Vice President South America, Vallourec.

Vallourec pipe supply will start at the end of 2019.

Brazil is one of the key markets and a main production and export hub for Vallourec. The activities in Brazil comprise two main industrial sites, with steel casting pipe, rolling and finishing facilities, and two highly specialised service companies for the oil and gas market, as well as one iron ore mine and planted eucalyptus forest.


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