CHICAGO Vallourec SA subsidiary V&M do Brasil SA has secured a five-year supply contract with Brazilian national oil company Petróleo Brasileiro SA (Petrobras).
The agreement covered seamless pipe, steel grades and connections used for offshore oil and gas production, the Boulogne-Billancourt, France-based steel tube and pipe maker said Wednesday.
The financial terms of the deal were not disclosed.
Brazil has large reserves of oil and natural gas in deep offshore "pre-salt" fields that are expected to account for 30 percent of Petrobras production by 2020, Vallourec said, noting that extracting hydrocarbons from those reserves represents one of the biggest investment projects in the world.
Rio de Janeiro-based Petrobras is expected to spend roughly $236.5 billion between 2012 and 2016, including $141.8 billion for energy exploration and production.