Core Insights - Shell plc has awarded a significant contract to Vallourec S.A. for the supply of OCTG products and services for the Orca project offshore Brazil, following a competitive bidding process [1] Group 1: Contract Details - Vallourec will deliver OCTG products, including seamless pipes and VAM® premium connections, for Shell's offshore operations at the Orca project [1][9] - The contract encompasses the entire OCTG requirements for the project, which involves drilling 10 wells and is estimated to require 12,000 to 15,000 tons of pipe [2][9] - The pipes will range from 4.5 inches to 18 inches in diameter and will be made from both carbon and stainless-steel materials [2] Group 2: Additional Services - Vallourec will provide a range of value-added services, including desk engineering, material logistics, and supervision of offshore operations, to enhance Shell's operational efficiency [3] - These services aim to reduce risks associated with drilling activities and support the overall project execution [3] Group 3: Project Timeline - Drilling operations for the Orca project are scheduled to commence in April 2027, with production expected to start in 2029 [2][4]

Core Insights - Petrobras has awarded Vallourec a multi-year contract valued at up to $1 billion for offshore oil well construction from 2026 to 2029, marking a significant shift in competitive sourcing for Brazil's oil sector [1][10] Contract Details - The contract includes the supply of seamless pipes and VAM® premium connections ranging from 4.5" to 18", covering both carbon and stainless-steel tubulars, along with engineering support and rig-site services [2][10] Vallourec's Strategic Positioning - Vallourec's success in securing this contract is attributed to its years of targeted investment in Brazil, allowing for local production of advanced tubes that were previously imported, and aligning with its strategy to focus on high value-added products while reducing output volumes to manage debt [3] Impact on Brazil's Energy Sector - The $1 billion contract enhances Vallourec's position within Brazil's offshore supply chain and supports Petrobras' well integrity and expansion programs, contributing to the country's energy resilience and growth [5][6] Historical Context - Vallourec has a longstanding partnership with Petrobras, evidenced by previous contracts, including a similar agreement awarded in September of the previous year for the supply of premium Oil Country Tubular Goods for complex projects [6]