2013-01-09 08:34:34 -

Press release



                 Vallourec pursues its long-term collaboration

                            with Petrobras in Brazil



Belo  Horizonte / Boulogne-Billancourt, 9 January 2013 - Vallourec, world leader
in  premium tubular solutions, announces the renewal of its main frame agreement
with  Brazilian national oil company Petrobras. Vallourec's Brazilian subsidiary
V & M do BRASIL and Petrobras have signed a 5-year-contract to supply Petrobras'
operations  with premium OCTG  products, including seamless  pipes, steel grades
and  connections using state-of-the art technology.  These products   will be used
for  Petrobras' offshore Oil  & Gas exploration  and production wells, including
the  huge reservoir of  the pre-salt fields.  With proven reserves  of up to 16
billion barrels, pre-salt should represent about 30% of Petrobras' production by
2020. The  Brazilian  national  oil  company  is  engaged  in one of the largest
investment  plans in the world, amounting  to US$ 236.5 billion between 2012 and
2016, including  US$ 141.8 billion for exploration  and production, according to
the Business Plan announced by the company in 2012.

With  this  contract,  Vallourec  consolidates  its  worldwide leadership in the
supply  of premium OCTG products  for the Oil &  Gas industry. Philippe Crouzet,
Chairman  of Vallourec's  Management Board,  declared: "The  renewal of the main
frame   agreement   with  Petrobras  is  an  important  step  in  our  long-term
collaboration,  dating  back  to  60 years.  We  are  honored  to  be trusted by
Petrobras,  who is renowned for its technological excellence, to supply our most
advanced  premium tubular solutions,  and support them  with our best innovation
capability  in  order  to  tackle  the  unequalled  challenges  of  the pre-salt
exploitation."



Huge technical challenges ahead

The  Brazilian pre-salt fields combine several additional challenges besides the
salt  layer itself: well  depths up to  7,000 meters, ultra deepwater conditions
with  up to  2,000 meters between  surface and  seabed, acid corrosion caused by
H(2)S  and CO(2)  contaminants, temperatures  and pressures  tending toward High
Pressure/High  Temperature conditions  in certain  areas. Associating  all these
parameters  together has an  important impact on  the exploration models, and on
the  requirements  for  OCTG  material  able  to withstand such a combination of
mechanical,  corrosive and thermal constraints. Vallourec, through its sustained
innovation  capability, is able  to meet all  these technological needs and will
supply  Petrobras with the  most advanced seamless  pipes for sour service using
high  alloyed material  as well  as the  latest and  unequalled advanced premium
connection VAM(®) 21.

Anticipating  new demands for  the pre-salt and  growing challenges in the still
unexplored  equatorial margins, Vallourec will open  in 2013 a new R&D Center in
the  State of Rio de Janeiro, located  next to Petrobras' research center CENPES
in  the Technological Park  of Rio de  Janeiro, and will  expand its current R&D
facilities located in Belo Horizonte, Minas Gerais.



ABOUT VALLOUREC

Vallourec  is a world leader in  premium tubular solutions primarily serving the
energy markets, as well as other industrial applications.

With  over 22,000 employees, integrated  manufacturing facilities, advanced R&D,
and   presence  in  more  than  20 countries,  Vallourec  offers  its  customers
innovative global solutions to meet the growing energy challenges of the 21(st)
century.

Listed  on  NYSE  Euronext  in  Paris  (ISIN  code: FR0000120354, Ticker VK) and
eligible  for  the  Deferred  Settlement  System,  Vallourec  is included in the
following indices: MSCI World Index, Euronext 100 and CAC 40.

In  the United  States, Vallourec  has a  sponsored Level  1 American Depository
Receipt  (ADR) program  (ISIN code:  US92023R2094, Ticker:  VLOWY). The ratio of
Vallourec ADR to ordinary shares is 5:1).



www.vallourec.com



VAM(®) is a registered trademark of the Vallourec group.



FOR FURTHER INFORMATION, PLEASE CONTACT

Press relations

Caroline Philips

Tel: +33 (0)1 41 03 77 50

E-mail: caroline.philips@vallourec.fr



Investor relations

Etienne Bertrand

Tel: +33 (0)1 49 09 35 58

E-mail: etienne.bertrand@vallourec.fr




130109_PR Vallourec Petrobras_ENG_(pdf): 
 hugin.info/143606/R/1669052/542185.pdf



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