Vallourec shares up 4% on TotalEnergies Azerbaijan gas field contract

Shares in Vallourec, a French steel pipe manufacturer, surged by 4% on Monday following the announcement of a significant contract with TotalEnergies. The deal involves supplying tubular products for the Absheron gas field in Azerbaijan, amounting to over 16,000 tons of goods including oil country tubular goods (OCTG) and line pipe.

Vallourec's statement did not disclose the monetary value of the contract. For the OCTG portion, the company will provide premium pipes with VAM premium connections, including the VAM SLIJ-3, its latest-generation semi-flush premium connection designed for demanding offshore environments. The contract also includes accessories manufactured at Vallourec's global facilities and CLEANWELL, its dope-free solution.

The line pipe portion comprises approximately 159 kilometers of anti-corrosion-coated pipe for both onshore and offshore use. Vallourec's local presence through its VAM Caspian unit will enable it to support TotalEnergies in various project operations. The Absheron field is located in Azerbaijan's Caspian Sea sector, about 100 kilometers southeast of Baku, in around 500 meters of water.

The field is being developed to produce up to 6 billion cubic meters of gas annually and 47,000 barrels of condensate daily. The gas will be distributed to Azerbaijan's domestic market and exported.