Vallourec, the French premium tubular solutions manufacturer, has been awarded a contract by offshore pipeline contractor Allseas (offshore contractor) to supply carbon steel seamless line pipes and thermal insulation coating for the Atapu 2 offshore project in Brazil, operated by the Unitized ATAPU consortium under Petrobras.

Contract Scope and Scale

The contract covers the supply of 143 kilometers of rigid risers and flowlines, representing approximately 19,000 tons of bare line pipe. In addition to the pipe itself, Vallourec will provide the associated thermal insulation coating, positioning the deal as an integrated supply arrangement spanning both manufacturing and coating services.

The agreement was announced on July 22, 2026, and represents a significant order for Vallourec's Brazilian industrial operations, which will handle production from start to finish within the country.

Project Location and Technical Demands

The Atapu 2 project is part of a broader effort by the Unitized ATAPU consortium to develop a portion of the offshore Atapu Field, located in the Santos Basin approximately 230 kilometers off the coast of Rio de Janeiro.

The field sits at water depths ranging from 2,000 meters to 2,350 meters, placing it firmly in the category of ultra-deepwater developments that require highly specialized pipe and coating solutions capable of withstanding extreme pressure and temperature conditions.

The production system for the Atapu 2 field will consist of 18 wells connected directly to a Floating Production Storage and Offloading vessel, known as an FPSO, through the rigid risers that Vallourec will manufacture.

Rigid risers in deepwater environments must maintain structural integrity under significant dynamic loads while also managing the thermal properties of produced fluids traveling from the seabed to the surface, making the combination of premium pipe manufacturing and thermal insulation coating a critical element of the supply requirement.

Brazilian Manufacturing Base

Vallourec will produce the seamless line pipes at its Jeceaba mill in Brazil. The thermal insulation coating work will be carried out at its Serra facility, drawing on capabilities that the company described as recently acquired.

Philippe Guillemot, Chairman of the Board of Directors and Chief Executive Officer of Vallourec, referenced in his statement the acquisition of Thermotite do Brasil as the source of those coating capabilities, describing the combination of pipe manufacturing in Jeceaba with the newly integrated coating operation as the foundation of what he called a full-scope, streamlined and efficient supply chain built on a strong local manufacturing footprint.

The Jeceaba and Serra facilities together allow Vallourec to handle both the primary manufacturing and the value-added coating process within Brazil, which aligns with local content requirements that are a standard feature of Petrobras-operated projects in the country.

Strategic Significance for Vallourec

Guillemot framed the contract as a direct illustration of the company's strategy to provide integrated, high-value solutions for what he described as the most challenging environments.

The ability to combine premium pipe production with thermal insulation coating under one supply arrangement is presented by the company as a differentiating factor in competing for complex offshore projects.

Vallourec describes itself as a world leader in premium tubular solutions for the energy markets and for demanding industrial applications including oil and gas wells in harsh environments.

The company employs close to 13,000 people across more than 20 countries and is listed on Euronext in Paris under the ticker VK, with an International Securities Identification Number of FR0013506730.

It is a component of the CAC Mid 60, SBF 120 and Next 150 indices and is eligible for Deferred Settlement Service. In the United States, the company has established a sponsored Level 1 American Depositary Receipt program under the ticker VLOWY.

Allseas and the Unitized ATAPU Consortium

Allseas, the offshore pipeline installation contractor, is the direct client relationship for this contract, with Vallourec supplying the pipe and coating to support Allseas's work on the project.

The end operator is the Unitized ATAPU consortium, which is operated by Petrobras, Brazil's state-controlled energy company. Petrobras has been actively developing the Santos Basin's pre-salt fields, of which the Atapu Field is one, as part of its longer-term production growth strategy.

The Santos Basin is one of the most productive offshore hydrocarbon regions in the world and has been the site of multiple major FPSO-based developments in recent years.

Projects in this basin frequently involve ultra-deepwater infrastructure of the kind described in the Atapu 2 scope, requiring equipment and services from specialized suppliers capable of meeting the precise technical tolerances demanded at those depths.

The contract announcement adds to Vallourec's profile of work connected to the Brazilian offshore sector, where the company's existing manufacturing presence in Jeceaba and its expanded coating capabilities in Serra provide a locally established base for serving both Petrobras-operated projects and the international contractors engaged to carry out the subsea installation work.

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