PRESS KIT

OFFSHORE OIL AND GAS ACTIVITIES

MARCH 2015

For further information, please contact

Press relations
Héloïse Rothenbühler
Tel: + 33 1 41 03 77 50
Mob: + 33 6 45 45 19 67
E-mail: [email protected]

1
PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

CONTENTS Page

Offshore oil and gas – Overview 3

- From the 1950s to present
- Main players

Vallourec, a major player in offshore oil and gas 6

- Portfolio
- Meeting the challenges of deep-water offshore
- Examples of offshore projects in which Vallourec
participates

Vallourec: a complete range of

products and services for the offshore industry 19
- OCTG products
- Drilling products
- Line pipe-
- Services

A brief description of Vallourec 25

2
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

Offshore oil and gas – Overview

appeared in the 1980s and only really began to
develop in the early 2000's.

Nowadays, the oil industry is planning to exceed

the ultra-deep stage (between 1,500 and 3,000
meters deep) to work in depths of nearly 4,000
meters.

Today, offshore represents about a third of the

world oil and gas production. The main
production zones are in the Gulf of Mexico, off
FROM THE 1950S TO THE PRESENT DAY Brazil, the North Sea, off West Africa, the
Mediterranean, the Arabian Gulf, the Caspian Sea
and the South China Sea.
The end of easy-access oil
Offshore, and particularly deep-water and ultra-
Since the first drilling operations carried out in deep offshore, is one of the few oil and gas
the 1950s in the Gulf of Mexico, production of reserves that is largely unexplored. As most
offshore oil has increased continuously. Over the shallow offshore zones are already in operation,
years, the water depths (between the surface of operators are focusing their efforts on deep-
the ocean and the seabed) have continuously water areas with ever increasing discoveries.
increased: from shallow offshore (less than 400 However, deep-water offshore operation
meters deep) which still represents most offshore requires state-of-the-art products and large
oil and gas production, to deep-water offshore investments.
(between 400 and 1,500 meters), which

Technological and environmental challenges are greater than ever

Beyond 200 meters water depth, human intervention is no longer possible; it is replaced by remotely
operated vehicles (ROV’s). . Beyond 300 meters, the installations are typically floating, anchored on
the seabed and sensitive to weather conditions. From 1,000 to 1,500 meters, conditions for
operation and intervention become much more difficult. At that depth, the temperature of the water
is around 4°C, creating a risk of hydrate and paraffin formation, which can obstruct the pipe during
production phases. Also, the pressure reaches 150 bars at a depth of 1,500 meters and increases by 1
bar every 10 meters.

In such an environment, the challenge consists of perfecting systems which prevent the oil from
cooling and resist the pressure, to keep it fluid and ensure it can be raised to the surface.

3
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

The oil and gas industry had to resolve difficulties specific

to certain fields, such as corrosion caused by acidic and
sour environments or the crushing of tubes that cross
pre-salt formations. This is evident in the large deposits
offshore Brazil. Generally, operators are confronted with
increasing complexity of offshore projects, located at
ever greater depths and ever further from the coasts.

Operating in deep water also causes particular difficulties to drillpipe and casing strings as loads can
be very high. The strength of conventional tubulars are not sufficient and a specific design must be
used to prevent the tubes from crushing in the jaws or slips tongues which hold them on the rotary
table during installation operations. . Robust connections with high-performance sealing must also
be used.

The drill pipes are subject to great tension stresses. In order to drill more complex wells in deeper
water, the use of high torque connections is necessary to transmit the rotation of the drill string from
the drill bit at the base of the well to the drill floor. .

Also, after the 2010 Deepwater Horizon incident in the Gulf of Mexico, the regulations and
requirements of oil companies and service and equipment suppliers have become even more
stringent, demanding ever greater risk mitigation during the drilling and production process.

MAIN PLAYERS

The development of offshore oil and gas is an entire network, in which oil companies and businesses
in the oil-related sector work side-by-side.

Oil companies

As the technological investments necessary for offshore operation are particularly high, the
international oil companies (notably Total, Chevron, Shell, BP and Exxon Mobil) share most of the
market amongst the international oil companies (IOC’s). However, the national oil companies (NOC’s)
of producing countries, such as Petrobras or Statoil, represent a very large part of the investments in
this field. Amongst the 10 main players in ultra-deep offshore, Petrobras is the world leader, with
nearly 50% of investments made in 2014, far ahead of Total and Shell.

4
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

Companies in the oil-related sector

In the area of oil field services, the main

players are Halliburton / Baker Hughes,
Schlumberger and Weatherford.

The main players in offshore construction

are Saipem, Subsea 7 and Technip. The
worldwide market is quite concentrated,
with 70% of worldwide consolidated
revenue generated by 10 companies. In the
field of drilling activity, the leaders are
Transocean, Seadrill, Ensco and Noble.

The range of products (OCTG tubes, line pipes, drill pipes…) and services from Vallourec is aimed
both at the oil companies and companies in the oil-related sector.

5
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

Vallourec, a major player in offshore oil and gas

Vallourec works as a supplier and privileged partner of oil companies and companies in the oil-
related sector on all offshore projects, including the most critical.

Vallourec's range of offshore products covers the entire hydrocarbon production chain, starting with
OCTG (Oil Country Tubular Goods) tubes intended to equip wells during the exploration and
production phases. Vallourec also has a complete range of products intended for drilling offshore
wells. These threaded seamless tubes are fitted with VAM® connections (a family of premium
threading invented and patented by Vallourec), which provides perfect sealing for the drill strings.

Downstream of the oil and gas wells, the Group markets tubes for offshore flowlines for transporting
hydrocarbons to the surface, as well as welded tubes for umbilicals, flowlines, and structural tubes
intended for offshore platforms.
The Group also offers a range of on-site services dedicated to the offshore industry.

KEY SUCCESS FACTORS

A great ability to innovate
Premium products
(grades, VAM® connections…) (dedicated R&D, new products/services…)
High local content Respect for the environment
(safe products, Cleanwell® coating…)
(local production and finishing, services, R&D,
logistics…) Long experience in the offshore industry
A complete range associated with real expertise amongst its
(products, services, welding) teams

Main deep-water projects in which Vallourec participates

LLOG

6
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

RESPONDING TO THE DEEPWATER OFFSHORE CHALLENGES

Vallourec's teams work in close collaboration with its customers to develop tailor-made solutions and
adapt the pipe and connections to the ever-higher technological demands characteristic of deep-
water and ultra-deep applications. The Group responds to these challenges by developing products
that are capable of withstanding corrosive environments, extreme mechanical stresses and high
pressure and temperature levels over the life of the well.

With "easy oil" drawing to an end, the development of innovative premium products is the Group’s
priority to meet the needs of its offshore oil and gas customers.

Technological challenges R&D solutions

R Growing share of deep wells in R "Sour service" steel grades of the

corrosive environments and/or HP/HT greatest strength (VM 125SS,
VM-120 DP MS/S)
R Pre-salt fields (Brazil and West Africa) R Corrosion-resistant alloys (High
Collapse tubes resistant to crushing,
CRA, 13% CR, Super 13% CR, etc.)
R Growing share of deviated wells
(extended reach, horizontal wells) R "High torque" connections (VAM® HTF,
VAM® HTTC,
TM
R Environmental concerns, cleanliness VAM® Express )
and sealing of wells R Cleanwell® Dry grease-free coating for
premium VAM® connections
R Complex projects (North Sea, Caspian R VAM® 21 (new generation of premium
Sea, Asia) connections) and VAM® HP (connection
dedicated to HP/HT wells)
R Installation of drill-string casing and R Drill pipes that have very high
repairs to very deep or corrosive wells resistance to crushing (CrushfreeTM)
(HP/HT)
R Maintenance and repair work on very R Riser drill pipes (VAM® DRP HPTM,
deep or corrosive wells (HP/HT) VAM® DPR SRTM)

R Drilling in the deep ocean R Range of VAM® TTR risers

7
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

THE STRATEGIC IMPORTANCE OF R&D

Innovating in profitable market segments

Vallourec's innovation strategy is based on a long-term

strategy that considers the growth potential of the energy
sector and the increasingly complex conditions of oil and
gas development.

Anticipating technological challenges

In the oil and gas sector, the technical l challenges faced by the Group's customers in deep waters
("high pressure and high temperature" deposits, salt domes, etc.) require the development of more
resistant steel grades and higher performance threaded connections. For submarine flowlines,
subject to extreme mechanical stresses in operating conditions, Vallourec is developing coordinated
coating and welding services (pre-assembly).

Supporting the Group's customers in the context of a continuous process of discussion

From the creation of the VAM®1 connection in 1965 to the development of the VAM® TTR2, a
connection dedicated to offshore production risers that meets the operators’ highest requirements,
innovation has led to numerous breakthroughs. These have enabled Vallourec's customers to access
offshore resources which until then were not exploited, or to improve the performance of their
facilities. These innovations are attributable to the close working relationship that the Group enjoys
with its customers.

Meeting the need for reliability and safety while minimizing our impact on the environment

The increasingly stringent requirements regarding the reliability and safety of installations and
tougher regulations testify to the importance of innovation. In line with its premium positioning, the
Group's goal is to respond to the far-reaching and rapid changes in its customers' needs and to offer
suitable solutions which are safe, reliable and mindful of the environment. In order to meet this goal,
Vallourec has considerably strengthened its R&D capabilities over the past few years.

Increasing Vallourec's leadership in processes and innovating in services

Innovation is not limited to developing new premium products. By improving our manufacturing
processes, particularly non-destructive tests, Vallourec innovations allows the creation of new
services so that customers can get the most out of our products.

1
VAM® is the Group's premium connection intended for the most complex applications.
2
Risers: pipes bringing the hydrocarbons to the surface.
8
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

VALLOUREC, AN ESSENTIAL PLAYER IN LARGE OFFSHORE PROJECTS IN THE MAIN REGIONS

OF THE WORLD

SOUTH AMERICA

- BRAZIL

Petrobras’ announcement, in 2007, of the first pre-salt fields discovery in a zone located 250 km east
of Rio de Janeiro was a major event due to the size of the estimated reserves.

These fields – Lula (ex Tupi), discovered in Location of pre-salt fields

2007, with 6.5 billion barrels, Iracema with 1.8 off Brazil
billion barrels, Franco, discovered in 2010,
with 4.5 billion barrels and Libra, discovered in
2010, with 8 to 15 billion barrels – are
amongst the largest discoveries in the world
over the last twenty years.

A partner of Petrobras for more than 60 years,

Vallourec supplies the Brazilian oil company
with unique tubes and connections to reach
hydrocarbons buried under 2,200 meters of
water and 5 to 7,000 meters below the sea
bottom, including a pre-salt layer of 2,000
meters.

Services contracts to support Petrobras in its complex offshore projects

In 2013, Vallourec signed two services contracts with the Brazilian national company, supplementing
the vast range of tubular products that Vallourec provides to its main Brazilian customer through a
framework contract of five years, renewed at the end of 2012.

The range of high-value-added services is the greatest ever supplied to Petrobras. It includes the
inspection and repair of tubes, on-site services, preparation of drilling operation equipment,
coordinating the supply of equipment for wells according to the drilling program… To this range of
services is added the organization of the supply chain in all ports from which Petrobras supplies its
offshore drilling platforms, managing tube tracking using RFID (radio frequency identification)
technology, providing engineers and special accessories rental.

9
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

Meeting the challenges specific to pre-salt fields

The exploitation of pre-salt fields combines several severe

constraints: deep-water offshore conditions, exceptionally deep
wells (up to 7,000 meters below the sea bottom), salt layers which
increase the risks of collapse, sour service environment, and
temperatures and pressures that in certain zones reach HP/HT
(high-pressure / high temperature) conditions.

Dedicated solutions

These are the circumstances under which Vallourec develops and supplies Petrobras, within a long-
term supply contract (see framed section on the following page), state-of-the-art tubulars and
connections, which meet the specific requirements of the most difficult fields exploited by the
Brazilian oil company:

- "Sour service" grades that are highly resistant to corrosion

- "High Collapse" grades resistant to collapse, heavy wall casing

- Premium line pipes

- Risers and drill pipe risers

- Premium drill pipes, well bottom tools and accessories

- VAM® premium connections

Enhanced R&D abilities

In order to anticipate new demand related to the

development of pre-salt fields, Vallourec very early
created a project R&D team, in close collaboration with
Petrobras, to develop innovative solutions adapted to
these extreme conditions. In 2013, the group opened an
expertise center in Rio de Janeiro, located near
Petrobras, enabling Vallourec to work even more closely
with the Brazilian national oil company on the
requirements related to the development of the pre-salt fields. In 2014, Vallourec also increased the
capacity of its R&D center in Belo Horizonte (state of Minas Gerais).

10
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

Customized services

Beyond its VAM® licensee network which provides after-sales service, Vallourec do Brasil created
storage facilities at various logistic centers belonging to Petrobras in order to perform "just in time"
deliveries, reducing storage costs and sourcing deadlines for Petrobras.

PETROBRAS

A historical player in the offshore industry well before the discovery of the pre-salt fields

Since its first offshore discovery in 1968, Petrobras has continuously developed this area, reaching
ever greater depths (see the image below). The group produces most of its oil offshore, representing
1.8 million barrels per day out of a total of 2.1 million (average over 10 months in 2014). Still in the
process of development 7 years after their discovery, the pre-salt fields represent production of
more than 300,000 barrels per day since 2013.

Source Petrobras

The world leader in ultra-deep offshore

With ultra-deep offshore production of about 420,000 barrels per day, Petrobras is now the world
leader in deep-water production.

Long-term collaboration between Vallourec and Petrobras

The cooperation between Vallourec do Brasil, a wholly-owned subsidiary of Vallourec, and Petrobras
goes back to the very beginnings of Vallourec's factory at Barreiro (Minas Gerais), built in 1952 to
supply tubular products to the emerging national oil industry.

This historical relationship has led to close links and extensive cooperation between the two groups,
resulting in a long-term supply contract and extensive services contracts.

11
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

Another example of a project in Brazil:

- Xerelete with Total

Operated by Total, the Xerelete field is located in the Campos Basin,

about 250 km off the coast of Rio de Janeiro and 2,400 meters below
sea level.

Vallourec Tubos do Brasil, a subsidiary of Vallourec in Brazil, was

selected in October 2013 to supply premium tubes used in wells
dedicated to exploration and evaluation of additional oil and gas
resources.

As well as premium products, Vallourec Tubos do Brasil supplies

several types of services, such as storage, inspection, preparation, and
monitoring tubes in the process of installation, providing Total with
greater security and faster execution.

GULF OF MEXICO

Vallourec supplies OCTG products (tubulars

and connections) for a large number of
projects located in the Gulf of Mexico.

This activity is supported in Houston by VAM®

USA, a subsidiary of Vallourec, which offers a
complete range of premium VAM® connections
adapted to the requirements of the Gulf of
Mexico. VAM® USA develops and tests the
connections within its own Connection
Technology Center, as well as offering
complete technical services and on-site Source: Offshore-technology.com
assistance.

12
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

WEST AFRICA

- ANGOLA

CLOV: a large range of premium offshore solutions

Operated by Total, CLOV is the fourth deep-water offshore

development center located in Block 17 off Angola, , after
Girassol, Dalia and Pazflor.

Vallourec has equipped the 34 undersea wells with about

15,000 metric tons of OCTG tubes fitted with premium VAM®
connections. Furthermore, two of the drilling platforms for the
CLOV project use drill pipes and connections delivered by
Vallourec. These are pipes dedicated to the most difficult drilling
conditions, such as highly deviated, extended reach wells. or
Vallourec also delivered a total of 28,500 metric tons
(representing 200 km) of seamless subsea flowline without
bends, as well as 2,400 metric tons of seamless tubes for risers,
which transport hydrocarbons to the FPSO3.

The solutions supplied by Vallourec include a wide range of services, such as the application of about
150 km of anti-corrosion coating on the flowlines, and the supply of some 700 bends curved by
induction. The production flowlines require the use of "pipe-in-pipe" technology to assure
hydrocarbon flow. They were preassembled directly in Angola.

Serimax, the subsidiary of Vallourec specializing in flowline welding services for the oil and gas
market, worked for 7 months with its Saturnax 09 welding equipment on board Seven Borealis, the
flowline laying ship belonging to Subsea 7. Over 5,500 welds on the flowlines, including sections
sensitive to corrosion and fatigue, were provided.

3
FPSO: Floating Production Storage and Offloading Unit
13
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

KAOMBO: premium tubes and connections to equip the ultra-deep offshore Kaombo project

Located 150 km off the Angolan coasts, the Kaombo oil field is one of the largest oil projects
operated by Total in this area. . The Kaombo project comprises 59 wells drilled in varied and complex
geologies requiring different types of wells.

A third of the wells require drilling through salt layers to reach the desired depth. The drilling
conditions there are particularly difficult, with water depths of between 1,400 and 2,000 meters, and
reservoirs located up to 5,000 meters below the sea bottom. .

Vallourec will supply 27,000 metric tons of tubular solutions (OCTG) to equip the offshore oil wells,
including VAM® 21 premium connections, VAM® SLIJII, and VAM® BOLT premium integral
connections.

The casing and production tubes used will be manufactured and finished in France, Indonesia and
Brazil. First production was finished in December 2014. The drilling operations, which will begin in
the third quarter of 2015, should finish in 2021.

- GHANA

PROJECT TEN: premium solutions for undersea flowlines

Operated by Tullow Oil PLC, project TEN is located in very

deep water off the Ghanaian coast. It is developed by a
consortium consisting of Subsea 7 and Technip.

Vallourec was selected in May 2014 to supply Subsea 7

with a total of 15,000 metric tons of undersea seamless
flowline tubes, coated against corrosion. Following the
delivery of tubes intended for production flowlines ("pipe-
in-pipe" system) and a gas export flowline, Serimax, a
subsidiary of Vallourec, carried out double-joint welding
operations.

14
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

- NIGERIA

PROJECT EGINA: high local content

Located 130 km from the Nigerian coast at a depth of 1,750 meters, the Egina offshore oilfield is
operated by Total Upstream Nigeria. It is in development and should be in production at the end of
2017.

Vallourec supplies premium undersea flowline tubes to Bell Oil & Gas, a Nigerian oil and gas company.
Out of the 24,000 metric tons of tubes ordered for this offshore project, 16,000 metric tons will be
used as undersea flowlines for production, water injection and the transport of gas. The remaining
8,000 metric tons will be supplied for the construction of a "pipe-in-pipe" riser.

Vallourec, which is participating in the Human Capacity Development Program (a Nigerian skill
development program) is currently training young Nigerian engineers in pipe production and
applications, thus complying with requirements for local content in the project.

West Africa, the other region of pre-salt fields

Discoveries of offshore pre-salt fields off West Africa
Cobalt
ENI

Nyonie Deep

Diaman 1

Nene Marine

Baleia 1, Orca 1 and 2,

Lontra, Mavinga,
Cameia, Bicuar
Azul 1
Denden 1

Source: Cobalt, ENI

The offshore pre-salt fields off West Africa are gradually revealing their potential through major
discoveries, including Diaman 1, a deep water project discovered by Cobalt and operated by Total
Gabon, and Nene Marine, a shallow water project discovered by ENI. Numerous drilling projects are
currently in progress.

15
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

NORTH SEA

GREATER STELLA: integrated tubular solutions for the North Sea

The Greater Stella zone, exploited by Ithaca Energy, is located in

the central part of the North Sea (block 30/06a), at 238 km south-
east off Peterhead (United Kingdom) and 17 km from the median
line between the United Kingdom and Norway. Buried at about 85
meters, Vallourec's premium tubes are used for the oil and gas
export flowlines.

The Group supplied premium seamless tubes, as well as coating

and welding services. The 96 km of tubes for undersea flowlines
were delivered at the beginning of 2013 to Technip, which is in
charge of the engineering, the supply of equipment and the
construction of the project (EPC4). To prevent corrosion and avoid
the formation of paraffinic deposits, the tubes supplied by
Vallourec are coated with three layers of polypropylene.

Serimax, a subsidiary of Vallourec and an international welding company, was selected to carry out
the welding work on Technip's assembly base at Evanton (United Kingdom). The contract specifies
the welding of 62.6 km of 10 inch gas export flowlines and 33.5 km of 10 inch oil export flowlines.

MIDDLE EAST

VAM®21 connections for the RED SEA

The Middle East region is well known for its production of onshore oil and gas, but it has an active
offshore segment, from shallow waters to very deep water operations.

Given its recognized expertise in this field, Vallourec is particularly well-placed to participate in the
exploration and development of new fields in the Red Sea and Arabian Gulf which have huge
potential.

Since 2012, Vallourec has signed several orders for VAM® 21 connections in Saudi Arabia to equip
offshore and deep-water offshore exploration wells located in the north part of the Red Sea, near the
Gulf of Suez.

Thanks to its unique sealing and mechanical resistance properties, the VAM® 21 connection is clearly
the best-adapted solution for the extreme conditions encountered when tapping complex deposits.

4
EPC: Engineering Procurement and Construction
16
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

Vallourec Saudi Arabia: the importance of local

finishing

Dedicated to heat treatment and threading for

the entire range of VAM® premium connections,
the Vallourec Saudi Arabia finishing plant located
at Dammam was qualified in early 2015.
The tubes intended for Saudi Aramco are
manufactured in several of Vallourec's rolling
mills, then sent to Saudi Arabia, either in the form of finished products or in the form of shells. These
are then heat-treated and threaded on-site, giving Vallourec a locally produced competitive
advantage.

In the region, Vallourec has drilling production centers at Jebel Ali and Abu Dhabi as well as an
Internal Plastic Coating (IPC) center in Abu Dhabi.

SOUTH-EAST ASIA

- INDONESIA

PRELUDE: process tubes for the first Liquefied Natural Gas floating unit

Shell will launch the first LNG floating platform, known as "Prelude", over a gas deposit located 200
km off the Australian coast and south-east of Indonesia, where it will remain for 25 years, the entire
period of deployment. This offshore facility, the surface area of which is greater than four football
fields, will open access to new and complex gas deposits.

The FLNG (Floating Liquefied Natural Gas) technology is revolutionary allowing offshore operations
near gas deposits, suppressing the need for pipes to transport the product or installing treatment
facilities for production on land. Shell's floating LNG structure will be able to liquefy the gas directly on
board, store it and transport it throughout the whole world.

At the end of 2012, Vallourec supplied Samsung Heavy Industries with 1,000 metric tons of process
tubes in steel alloy and carbon steel used for surface installations and for the hull of the floating LNG
platform.

17
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

- BRUNEI

ML SOUTH: a 100 million dollar contract to supply premium tubes and VAM® 21 connections

Operated by Total E&P Borneo, a subsidiary of the

Total group, the offshore project ML-South, with
large reserves of gas and condensates, is located in
Block B off Brunei, about 65 meters below sea level.
It is an extension of the Maharaja Lela/Jamalulalam
field already in operation.

The development well will produce at a depth greater than 5,000 meters, in a highly corrosive
environment, with particularly high levels of pressure and temperature (HP/HT).

Vallourec will equip the wells with premium tubes, most of which are composed of highly alloyed
grades of steel, resistant to corrosion, and are threaded with the latest premium VAM® 21 connections.
The casing and production pipe will be manufactured in Vallourec's European and Indonesian mills.
The tubes will be delivered to Total E&P Borneo for the drilling operations, which are planned to begin
during the second half of 2015.

18
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

Vallourec, a complete range of offshore products and services

VALLOUREC OFFER FOR OFFSHORE APPLICATIONS

Products
o OCTG (tubing, casing and
connections)
o Drilling tools (drill pipes, well bottom
tools and accessories)
o Line pipe (risers and flowlines)
o Accessories (Completion equipment
mechanical tubes, well screens, etc.)
o Umbilicals
o Tubes for FPSO and other platforms
(flowlines and structures)

Services
o VAM® Field Services Offshore
o Welding (Serimax)

19
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

A VERY WIDE RANGE OF OFFSHORE SOLUTIONS

OCTG (TUBES AND CONNECTIONS)

Vallourec produces and markets OCTG to equip offshore

oil and gas wells: casing, production tubing, and
accessories.

All of these products, made from seamless hot-rolled

tubes, are fitted with API/Buttress threaded connections
or, more likely, premium connections from the VAM®
family. Premium connections guarantee customers tubular system reliability, and therefore meet
their requirements with regards to safety, the environment, and performance.

VAM® 21: a connection as strong as the tube

This connection has been validated using

ISO13679 FDIS-2011 CAL-IV, the most recent
technical specification required by oil
companies for the most critical applications,
especially offshore. The VAM® 21 connection
withstands extremely high temperatures and
pressures, and resists the greatest axial loads.
It is currently the only connection in the world
that is qualified according to the new 2011
standards, and is capable of offering sealing
and mechanical performance equivalent to
that of the tube over a wide range of sizes.

This coupled solution is perfectly suited to the most extreme environments, such as HP/HT (High
Pressure/High Temperature) deposits, highly deviated wells, or when drilling-with-casing.
Furthermore, the VAM® 21 facilitates self-alignment of the tubes, ensuring secure and rapid make up
on the rig. It can be used with the Cleanwell® Dry coating, which preserves the environment while
allowing dope-free tube connection.

VAM® 21 threading can be carried out in most of the Group’s threading units around the world and
maintenance is provided by the many VAM® licensees based in over 50 countries.

20
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

CLEANWELL®, THE FAMILY OF GREASE-FREE COATING PRODUCTS FOR THE DIFFICULT CONDITIONS
OF THE NORTH SEA

There is strong demand for products that are environmentally-friendly and facilitate the installation
of tubes, particularly in the North Sea.

Cleanwell Dry®, the latest edition to the Cleanwell® family, is a lubricant ('dry' coating) developed for
threaded connections which avoids the use of dope and effectively protects tubes against galling and
corrosion, including under extreme low temperature conditions.

VAM® RISER FOR DEEP-WATER APPLICATIONS

Vallourec is the leader in the market for threaded and coupled connections used for riser
applications. The threaded tubes that link top-side wellhead systems to the sub-sea wellheads have
to withstand exceptional levels of fatigue, therefore cutting-edge technology and specific approval
tests were developed. Several projects are currently taking place in Brazil, Australia, the Gulf of
Mexico and Indonesia.

VAM® TTR:

VAM® TTRTM is a threaded and coupled connection for risers that

provide very high resistance to the fatigue generated by ocean
currents.
This connection has been successfully used in several projects
over the last ten years and constitutes the industry standard for
"high fatigue resistance" applications.

21
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

DRILLING PRODUCTS

The Group offers a complete range of products for drilling applications:

- a range of connections providing torque, tension and hydraulic performance adapted to a wide
variety of drilling programs
- a wide range of steel grades and wall thicknesses for handling the stresses encountered during
drilling operations
- steel grades dedicated to drilling in an H2S environment
- products for specific offshore applications and, in particular, a range of Landing Strings, for
installing undersea equipment or casing. In particular, the CrushFreeTM landing string enables
work at very great depths of water. However, other more conventional products are adapted to
shallow water.
- Work-over riser systems, for carrying out maintenance operations on mature wells or installing
casing.

In addition to its portfolio of products, Vallourec Drilling is developing tube maintenance and
inspection services for customers in the North Sea, to extend the life of these remedial well
operation tools..

LINE PIPES (RISERS AND FLOWLINES)

For the specific undersea construction market (or

SURF for Subsea Umbilicals Risers & Flowlines),
Vallourec supplies risers and flowlines6 which
transport hydrocarbons from the wellhead to the
surface, then route them to the processing units.

To cope with the technical and economic issues

associated with offshore projects, particularly those in deep water, Vallourec offers solutions
adapted to the specific conditions of each project. With the support of its R&D centers, for tubes and
welding, but also in cooperation with its customers, Vallourec provides technological solutions to
severe technical constraints such as resistance to fatigue, high pressure, high temperatures and
corrosion.5

5
Riser: pipe connecting the surface platform to the flowlines which are on the seabed. / Flowline: pipe laid on
the seabed for transporting hydrocarbons (oil and gas) and water injected into the reservoirs.
22
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

Integrated offers covering tubular requirements for "SURF" applications, take into account the
specific characteristics of each project to reduce risks and execution costs, and creating value for the
customer.

This is executed by offering an integrated set of products and services. Tubes for flowlines are
produced according to required specifications, interior and exterior coatings are applied to ensure
proper fluid circulation and pipe protection, and welding tubes for specific equipment and
installation at sea by its subsidiary Serimax, supported by an organization dedicated to project
management, allows Vallourec to develop innovative solutions for current and future projects.

UMBILICALS

Umbilicals are complex control lines dedicated to transporting fluids, supplying power and
transmitting information. They consist of small-diameter tubes, cables and optical fibers connecting
equipment installed on the seabed to their control stations on the surface.

Vallourec has a competitive premium range of products for this market. The know-how acquired by
the Group through its subsidiary, Vallourec Heat Exchanger Tubes, in the production of long welded
tubes has enabled the Group to reduce the number of orbital welding points for these small
diameter hydraulic tubes.. The umbilicals assembled with Vallourec tubes are lighter and provide
greater resistance to fatigue, which is substantial in a sub-sea environment...

TUBES FOR FPSO AND OTHER PLATFORMS (FLOWLINES AND

STRUCTURES)

The Group's products are also intended for hydrocarbon

processing facilities located downstream of the energy value
delivery chain. In particular, Vallourec's tubes and fittings are
part of the processing units on FPSO, FLNG and floating
production platforms.

23
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

A RANGE OF SERVICES DEDICATED TO THE OFFSHORE INDUSTRY

VAM® Field Service Offshore is a range of on-site services specifically dedicated to the offshore
industry. It is a service provided by Field Service inspectors on the rig, with teams overseeing the
correct installation and trouble-free running of the tubular systems..

This service is part of a complete range of innovative solutions known as "Vallourec Global Solutions",
designed to meet its customers’ most advanced requirements throughout their projects.

Developed for the oil and gas sector, and particularly for the offshore industry, this combines a set of
products and services that provide tailor-made solutions specific to each requirement of oil
companies, from pipe and connections manufacturing to their installation in the wells.

OFFSHORE WELDING: SERIMAX

For offshore subsea flowline projects, coordinated coating and welding services (pre-assembly) are
now available in addition to the supply of tubes, thanks to the expertise and know-how of Serimax. A
wholly-owned subsidiary of Vallourec,
Serimax develops new technologies and
solutions that widen the Group’s range of
services for customers.

Saturnax 09 is the latest welding device

developed by Serimax. A versatile system, it
can manage all sorts of welding techniques.

The other essential characteristic of this

new system is its flexibility relative to the
Key figures:
shape and position of the weld at the pipe
- 40 projects ongoing to pipe intersection. It can weld any type of
edge and join two elements in any position,
- 1 000 employees
providing considerable time savings.
- 50 R&D technicians and engineers
- Offshore: 80% of consolidated revenue

24
 PRESS KIT
OFFSHORE OIL AND GAS ACTIVITIES
MARCH 2015

Vallourec at a Glance Répartition du chiffre d'affaires en 2014 par activité

Industrie &
The A (or “the”) leading supplier of
autres
premium tubular solutions for the 17,6%
energy markets (oil and gas, power
generation), Vallourec also provides its Pétrole et Energie
gaz, électrique
expertise to the industrial sector.
pétrochimie 10,7%
With more than 23,000 employees, 71,7%
consolidated revenue of €5.7 billion in
2014, 81% of which is generated
outside Europe, integrated production units, advanced R&D and a presence in more than 20
countries, Vallourec offers global innovative solutions adapted to the energy challenges of the 21st
century.

Specialized in the most complex applications, Vallourec relies on its six research and development
centers throughout the world and more than 500 engineers and technicians to maintain its
technological leadership and meet industries changing demands. Our control of the entire chain,
from steel production to finishing to installation, is a guarantee of the excellence and reliability of its
products.

For the oil and gas market, the Group designs and develops a complete line of products including
seamless tubes and premium connections (OCTG) intended for drilling and production operations,
and , and line pipes for subsea gathering systems. These products equip wells in the most extreme
conditions high-pressure, high-temperature or corrosive environments, highly deviated wells, and
deep-water offshore.

In the electrical power generation market, Vallourec offers a range of premium tubes that resist the
highest temperatures and pressures, allowing electrical operators to meet the challenges of energy
efficiency and control of CO2 emissions from power stations.

Vallourec also provides a wide range of tubes for petrochemical facilities (refineries), and tubular
products intended for mechanical applications (hydraulic jacks, machine tools, etc.), the automobile
industry and construction (stadiums and other
complex structures and buildings) and for other
industries.

To support the growth in energy markets, Vallourec is

pursuing a far-reaching local development strategy
with new locations in Brazil, the USA, the Middle-East
and China, in order to bring solutions closer to its
customers and improve its competitiveness.

Photos and illustrations, all rights reserved : Petrobras, Thiago Fernandes, Frédéric Lepla (avec l’aimable autorisation de Subsea 7), Getty Images/iStockphotos, Mark Hall, Phillippe
Dureuil, Ewen Weatherspoon, Photothèque Vallourec et Serimax.
25