Vallourec said it got a fourth major order in the framework of a 10-year Long-Term Agreement (LTA) it signed in 2021 with ExxonMobil Guyana. Under the contract, Vallourec will deliver line pipe for the Whiptail project.
Vallourec will deliver over 180 kilometers (km) of line pipe, including X80 grade (following the lots previously booked for the Uaru order). X80 is a differentiated solution developed and qualified by Vallourec’s R&D teams. “The X80 grade combines high strength with resistance to service conditions, making it a valuable contributor to future deeper-water developments,” Vallourec said.
Under the LTA, Vallourec has received orders for the Yellowtail, Gas-to-Energy and Uaru orders. With the Whiptail order, Vallourec said it has now secured orders for approximately 700 km of line pipe for installation offshore Guyana since December 2021. Vallourec will serve Exxon from its Jeceaba mill in Brazil’s Minas Gerais state.
Philippe Guillemot, Chairman and Chief Executive Officer of Vallourec, commented: “This significant new contract represents the fourth under the 10-year frame agreement signed three years ago with ExxonMobil Guyana. This is also the second order to include our grade X80, demonstrating Vallourec’s ability to deliver solutions to the industry that are both technological and efficiency enablers. This is a new milestone in Vallourec’s long history with ExxonMobil, and I would like to thank ExxonMobil once again for its confidence in Vallourec and our team for this great work”.
The Whiptail project will be the sixth ExxonMobil-operated development project in the Stabroek Block offshore Guyana. It will involve a floating production, storage and offloading (FPSO) vessel to be delivered by SBM Offshore. Whiptail is targeting production of approximately 850 million barrels of oil at a rate of 250,000 barrels per day (b/d). First oil is expected in 2027.
