French steel tube manufacturer Vallourec has secured two significant Oil Country Tubular Goods contracts to support drilling operations for major Chinese oil companies CNOOC and PetroChina in Iraq. The contracts represent a substantial business opportunity for Vallourec while demonstrating the company’s ability to serve complex drilling projects in one of the world’s most important oil-producing regions.
The two contracts carry combined potential revenue of over $130 million, reflecting the scale and strategic importance of the drilling operations they will support. This revenue potential positions the Iraq contracts as significant contributors to Vallourec’s financial performance while establishing the company’s presence in a key growth market for oil and gas development.
The contracts encompass the supply of both carbon steel and Super-13Cr steel OCTG products, each featuring VAM premium connections. This product range demonstrates Vallourec’s ability to provide comprehensive solutions for varying downhole conditions and technical requirements. The inclusion of Super-13Cr steel products indicates the presence of challenging well conditions that require advanced materials capable of withstanding corrosive environments and high-pressure, high-temperature conditions.
Vallourec’s VAM premium connections represent a key differentiator in the OCTG market, providing superior sealing performance and mechanical strength compared to standard threading systems. These premium connections are particularly valuable in complex drilling environments where well integrity and operational reliability are paramount considerations for drilling success.
Deliveries under both contracts are scheduled throughout 2025 and 2026, aligning with the planned drilling campaigns of both Chinese operators in Iraq. The extended delivery schedule reflects the substantial scale of the drilling operations while providing Vallourec with sustained revenue visibility over the contract period. This timeline also allows for optimal production planning and supply chain management to ensure timely delivery of specialised OCTG products.
The contracts are designed to support Iraq’s increasing drilling activities, which reflect the country’s broader strategy to expand oil production capacity and maximise recovery from its extensive hydrocarbon reserves. Iraq’s position as one of the world’s largest oil producers creates sustained demand for high-quality OCTG materials capable of supporting complex drilling operations.
The diversity of these projects highlights Vallourec’s unique ability to tailor its product offering to the distinct technical requirements of different operators. Each drilling project presents specific challenges related to geological conditions, well design, and operational parameters, requiring customised OCTG solutions that meet precise performance specifications.
Iraq holds some of the world’s largest proven oil reserves, with several super-giant oil fields that contain billions of barrels of recoverable hydrocarbons. These massive fields are increasingly being developed by international oil and gas companies, creating substantial demand for specialised drilling equipment and materials. The scale of these reserves justifies significant investment in advanced drilling technologies and premium materials that can maximise recovery rates while ensuring operational safety.
The involvement of major Chinese oil companies CNOOC and PetroChina in Iraq reflects China’s strategic interest in securing long-term energy supplies while participating in the development of Iraq’s oil sector. Both companies bring substantial technical expertise and financial resources to their Iraqi operations, supporting the deployment of advanced drilling technologies and premium materials.
Rising demand for premium OCTG material reflects the increasing scale and technical complexity of ongoing and future drilling projects in Iraq. As operators target deeper reservoirs and more challenging geological formations, the requirements for specialised steel products and advanced connection systems become more stringent. This trend supports premium pricing for high-performance OCTG products while favouring suppliers with proven technical capabilities.
Vallourec’s success in securing these contracts demonstrates the company’s competitive position in the global OCTG market and its ability to meet the demanding technical requirements of major international operators. The company’s combination of advanced metallurgy, premium connection technology, and manufacturing capability positions it to serve the most challenging drilling applications worldwide.
The Iraq contracts also reflect Vallourec’s strategic focus on high-value markets where technical performance and reliability are prioritised over price considerations. By concentrating on premium applications, the company can maximise margins while building long-term relationships with leading operators in key oil and gas-producing regions.
The successful contract awards position Vallourec to participate in Iraq’s continued oil sector development while establishing relationships with major Chinese operators that may lead to additional opportunities in other global markets. The company’s proven ability to deliver complex OCTG solutions enhances its reputation and competitive position for future contract competitions.
For more information visit www.vallourec.com
