OCTG NÂ°8 DEF.qxd (Page 1) - VAM Services

THE VALLOUREC & MANNESMANN TUBES MAGAZINE 

OIL & GAS DIVISION 

April 2008 - No.11 

30 years of 

VAM partnership 

Vallourec Group

EDITORIAL 

Vallourec’s business in the oil & gas 

sector now accounts for almost half 

of the Group’s income. This brings 

great responsibility for our division 

- I have had the pleasure of heading 

since January 1st this year - but 

it also offers a fantastic opportunity 

to operate in an ever-changing 

world. The challenge is to keep one 

step ahead as markets change 

faster and more unpredictably than 

ever before: consumption is growing 

rapidly; raw materials are getting harder to come by, the number 

of market stakeholders is shrinking and exchange rates are fluctuating 

wildly. 

At a time when oil prices are higher than ever, when the future 

of the world's energy supplies is a cause for both concern and 

for optimism, and when the environment is never far from the 

top of the agenda, our Division is more determined than ever, 

not just to meet existing commitments but also to move forward 

with our customers as they face the multitude of new challenges 

which lie ahead. This determination can be seen in the unprecedented 

levels of investment now being made by our Group. 

Examples include the creation of VAM Drilling, the construction 

of new manufacturing plants in China, the announcement of the 

acquisition of three companies from Grant Prideco, increases in steel 

and tube production capacity in Europe and the highly ambitious 

project for a new integrated tube mill in Brazil. 

This Brazilian project brings me to the partnership between 

Vallourec and Sumitomo which is heavily featured in this issue 

of V & M REPORT. This partnership has now lasted for more 

than thirty years and its sole purpose has been to develop the 

VAM family of products throughout the world. It has now reached 

a new stage as the two groups come together in the Jaceaba 

project which is due to come on stream in 2010. This is good 

news for our Division, as the bulk of the output of this massive 

complex will be reserved for the oil and gas market! 

Although these two large industrial groups work in partnership, 

each handles its own marketing activities. The reason why 

this relationship has lasted so well and so long is that it is based 

on respect, trust and loyalty: values which we hope we will 

continue to share with all of our customers. 

Pierre Frentzel 

Oil & Gas Division Managing Director 

CONTENT 

VAM ® is a registered Trademark of Vallourec Mannesmann Oil & Gas France 

VAM PARTNERSHIP 

P.04 - Vallourec and Sumitomo 

Metals: Partnership stands 

the test of time 

P.06 - A History of Making 

Premium Connections 

across Cultures 


Metals R&D engineer 

exchange program: 

Gabriel Briquet in the heart 

of the partnership 

P.10 - VAM (Changzhou) Oil and Gas 

Premium Equipment Co. Ltd: 

Hand in hand with Sumitomo 

P.12 - VAM Field Service Beijing: 

Promoting VAM in China 

P.13 - Vallourec & Sumitomo Tubos 

do Brasil Ltda.: Two groups 

join forces in ambitious project 


Metals: 30 years of VAM 

partnership ceremony 

PRODUCT APPLICATION 

P.18 - V & M TUBES Facilitates 

Upsurge in North Sea HP-HT 

Activity: Pushing Back the 

Boundaries 

P.20 - Development of Smart High 

Performance: Drill Stem Rotary 

Shouldered Connections 

SERVICES 

P.22 - VAM Field Service Angola: 

Right at the heart of Angola’s 

oil industry 

EVENTS 

P.23 - V & M TUBES sponsored the 

10th edition of the Expandable 

Technology Forum 

P.25 - SPOTLIGHTS 

www.vamservices.com - www.vamdrilling.com 

Publisher: VALLOUREC & MANNESMANN TUBES - 27, avenue du Général Leclerc, 92660 Boulogne Billancourt Cedex- France - Editorial Team: Hassna Belmalek - 

Phone: + 33 1 49 09 35 83 - E-mail: hassna.belmalek@vmtubes.fr - Sylvie Dubois-Decool - Phone: E-mail: sylvie.duboisdecool@vmtubes.fr - Fax: + 33 1 49 09 37 13 - Production: 

Zabriskie., Paris - Design: LeGrand8., Paris - Photographs: Thierry Truck, V & M TUBES, VMOGUK, VAM USA, VAM Drilling, VAM Changzhou, VAM Field Service Beijing, Hassna 

Belmalek, V & M do Brasil, or as mentioned otherwise - All rights reserved.


Vallourec and Sumitomo Metals 

Partnership stands the test of 

Thirty years of working together have taught Vallourec and Sumitomo 

Metals to understand and respect each one’s methods. The two groups have 

united their strengths with the single aim of developing business of VAM 

family products throughout the world. We now look back on this solid and 

enduring partnership with Alain Lancry, Marketing & Development Director, 

and Thierry Noël, General Manager R & D Premium Connections. 

Thierry Noël, 

General Manager 

R & D Premium 

Connections. 

V & M REPORT: What did Vallourec expect 

to gain from an arrangement of this kind 

when the original contract with Sumitomo 

was signed back in 1976? 

Alain Lancry: Our partnership has 

now lasted for three decades, and it all 

started when we concluded a licensing 

agreement with Sumitomo authorizing 

them to produce and market 

VAM connections developed by 

Vallourec. Although our Group had 

not yet achieved its current international 

stature at that time, we were 

already having high expectations on 

this family of products. It seemed to 

us that the quickest and most effective 

way to succeed was to enlist the service 

of another company to promote 

VAM products world-wide. 

V & M REPORT: And what were Sumitomo 

looking for? 

Thierry Noël: We had finalized the 

design of the VAM technology around ten 

years earlier and were well ahead of the 

field. The licensing agreement saved 

Sumitomo the time they needed to develop 

a product to compete against us, and 

they were very soon able to win a dominant 

position in the markets where they 

operated. The interests of both groups 

coincided perfectly, and this clearly goes 

a long way to explain why the partnership 

has lasted so long. 

V & M REPORT: How has this partnership 

evolved over the years? 

Thierry Noël: Despite the fact that 

Vallourec holds the trademark for VAM, 

Sumitomo has always been ambitious in 

terms of R&D. The two groups signed an 

agreement to work together on research 

and development in 1985 - nine years after 

the original license contract. This arrangement 

soon saw the birth of the VAM 

ACE and NEW VAM range of connections. 

Then as now, the idea was to pool 

our human and material resources to develop 

connections which deliver high added 

value - known as premium connections. 

The ongoing relationship with our 

Japanese counterparts has been a key feature 

of my work in R&D since joining 

Vallourec in 1986. 

Alain Lancry: We strengthened our 

ties even more at that time with the 

joint acquisition of a Houston-based 

threading company [Ed: 49% held by 

Sumitomo, with Vallourec owning 

51%]. This initial joint-ownership 

scheme did exactly what it was supposed 

to do and gave VAM a foothold on 

the American market. VAM USA is 

now doing very well (see page 6). 

We then went on to buy stakes in PT 

Citra Tubindo in Indonesia and in 

Vietubes in Vietnam. We have also established 

joint offices in Singapore and 

Beijing - and have just finished construction 

work at VAM Changzhou, 

our new threading plant in China! 

V & M REPORT: What does each of the 

partners bring to the R&D effort? 

Thierry Noël : We have been working 

together in areas of common interest 

right from the start of our R&D 

agreement, and we always try to reach 

a consensus. This means that when we 

are looking at a new product, we need 

to reach agreement on things like geometry, 

morphology, dimensions and 

performance requirements. French and 

Japanese teams are used to moving 

ahead on a project at the same time, 

with regular reviews to examine progress 

on development. This approach 

allows us to keep working towards the 

goal we have set ourselves, while keeping 

a number of options open as to 

the best way to get there. This method 

has been made even more effective 

recently through exchange visits by 

young engineers from the two companies' 

R&D departments (see page 

8). 

We are also in the process of setting 

up joint project teams. 

4 

V & M R E P O R T - O I L & G A S D I V I S I O N S P E C I A L I S S U E N R . 1 1 - A P R I L 2 0 0 8

time 

V & M REPORT: What about customer 

satisfaction? 

Alain Lancry: Analysis of the requirements 

of our respective customers gives 

us a much fuller picture of world 

demand and puts us in a position where 

we can design and develop the most suitable 

products and this participates greatly 

to VAM customer satisfaction. Our 

approaches to longer-term developments 

go together quite well as well. 

V & M REPORT: How do the Sumitomo 

and Vallourec R&D teams keep in touch 

with each other in practice? 

Thierry Noël: As well as the close contact 

we maintain at many levels during 

the course of joint development projects, 

we also get together for our quarterly 

three-day technical meetings, as 

well as for the annual technical advisory 

committee session. The meetings 

generally alternate between Japan and 

France, and are sometimes held in the 

United States as well - allowing us to 

go and see VAM USA and visit U.S. 

customers. 

Alain Lancry: With the large integrated 

tube mill project in Brazil, the 

new VAM Changzhou plant, exchange 

visits between R&D engineers and - 

last but not least - the celebration of 

the thirtieth anniversary of our partnership 

- this year will have a distinct 

Franco-Japanese flavor for both of our 

groups! 

V & M REPORT: How would you characterize 

this relationship? 

Thierry Noël: There's no denying that 

our respective cultures are very different. 

We have all had to respect each 

other's way of doing things and accept 

our differences to turn this potential 

handicap into something positive. The 

French tend to take a conceptual approach, 

while the Japanese are more handson. 

We make changes as we go along: 

our partners see things through to the 

end. We like to be challenged and at 

times can be downright confrontational; 

they are looking for unity and harmony. 

Neither of these two approaches 

is better than the other, and the combination 

of the best of each can be awesomely 

effective! 

V & M REPORT: How do you see this relationship 

developing in the future? 

Alain Lancry: It's never easy to imagine 

what things are going to be like 

Alain Lancry, 

Marketing & Development Director. 

more than a few years ahead, especially 

when the future is so closely linked to 

the oil and gas market. One thing which 

is certain though, is that the days of the 

all-purpose connection are well and 

truly over, and we are going to see more 

and more specialized products to meet 

increasingly difficult operating conditions. 

This means that the partnership 

between Sumitomo and Vallourec still 

holds a great deal of promise, particularly 

as R & D is concerned. 

We are now also involved in a large number 

of joint projects, which will culminate 

in the creation of a large ultramodern 

industrial complex at Jeceaba in 

Brazil by 2010. This investment is worth 

around 1.6 billion dollars and is testimony 

to the mutual trust, the shared 

interest and the enjoyment of working 

together which enables our two great 

companies to cooperate so closely. 

VAM: a forty-something which still creates a stir 

The VAM connection is now over forty years old. It owes its name to V for Vallourec combined with the initials of Alexandre 

Madrelle, the head of the design team responsible for its creation. Back in the early sixties, the oil industry was looking for a 

connection which exceeded the performance capabilities of the API connections in use at the time. The way forward came in a 

flash of inspiration in the shape of a tapered end which reinforces the contact pressure on the seal area. The more you tighten, 

the better the seal! This is the VAM effect - patented in 1965 and still the inspiration for the entire VAM family. 

V & M R E P O R T - O I L & G A S D I V I S I O N S P E C I A L I S S U E N R . 1 1 - A P R I L 2 0 0 8 5


A History of Making Premium 

For the last twenty-three years, 

VAM USA, thanks to its employees, 

has set up the VAM 

standard in North America. 

American, French and Japanese team 

members support VAM growth in 

North America, promoting VAM products 

to the leading oil and gas companies 

and providing technical sales 

support. Their experience is further 

enhanced by the unique and exciting 

opportunity to develop an appreciation 

of each other’s cultures, strengths and 

capabilities. 

DIVERSITY MAKES 

FOR A RICH CULTURE 

From left to right: 

Grady Harrison, 

Kenji Hanada, 

Laurent Dubedout, 

Franck Montalvan, 

Takahiro Takano. 

“This company has long been seen as a 

university for talent from both Japan 

and France to brush up on their skills 

and knowledge of the local market. But 

it’s much more than that,” said Grady 

Harrison, President, VAM USA. 

Within the walls of this 50 ha. facility 

in Houston, 225 team members—including 

American, French, Japanese, 

Mexican, Brazilian, and others—are 

VAM USA is 51% Vallourec and 49% 

Sumitomo (34% Sumitomo Metals, 

15% Sumitomo Corp.) with an evenly 

split Board of Directors. It is the result 

of a thirty-year partnership between 

French-owned Vallourec and Japaneseowned 

Sumitomo who saw the opportunity 

to co-develop the world’s leading 

premium connections used in the most 

extreme conditions. In 1984, they purdeepening 

their understanding of each 

other. They are not just learning about 

obvious cultural differences, they are 

also learning about how each approach 

and solve problems differently. 

Although the language barrier is the 

first challenge to overcome, the real fun 

starts when team members approach 

making decisions. They have totally different 

decision-making processes. “The 

French are more creative and are quicker 

to jump to conclusions. And the 

Japanese help us to make the right decisions, 

being disciplined in the way we 

manage our projects,” observed Laurent 

Dubedout, General Manager of 

Technical Services. Kenji Hanada, Vice 

President of Strategic Marketing 

agreed, adding that generally speaking, 

“The Japanese want to have a complete 

plan beforehand. The French are theoretical. 

They want to think through 

the theory. Americans are positive—just 

do it attitude—and learn from the experience. 

Every culture has their good 

points that we can utilize.” 

And it was this sort of unique, multicultural 

experience that Takahiro 

Takano, R&D General Manager felt 

made coming to VAM USA an exceptional 

opportunity. “Working with my 

Japanese colleagues has helped me to 

become clearer, to explain things with 

greater clarity, and to constantly reformulate,” 

admitted Dubedout. “VAM 

USA has a unique culture that understands 

and respects those differences 

and incorporates the best of both 

worlds,” Harrison stated with pride. 

PAST, PRESENT, 

FUTURE 

6 


Connections across Cultures 

chased OTIS PTS, a company licensed 

to thread VAM joints. This allowed 

both companies to consolidate a U.S. 

presence, which they called VAM PTS. 

At first, VAM PTS helped both companies 

to establish a “technical embassy” 

(as Harrison put it) near their oil and 

gas customers headquartered in the 

area. With Houston at the heart of the 

global OCTG market and with threading 

at the center of OCTG, VAM 

USA’s engineers and managers enjoy 

unprecedented access to the world’s 

major oil & gas decision makers and 

R&D personnel. 

This proximity to customers—to better 

understand and anticipate their 

needs—is one of VAM USA’s four major 

strategic initiatives, along with continued 

growth, increased competitiveness 

and innovation in premium products 

and services. Over the last four or 

five years, the focus has shifted from 

maintaining a presence with their customers 

to bolstering the other three 

major strategic initiatives. 

In just over four years, VAM USA 

has doubled its revenues. This is expected 

to double again once the acquisition 

of Atlas Bradford is completed 

later this year (VAM USA is waiting for 

clearance from the Department of 

Justice). At the same time, VAM USA 

recently invested in additional threading 

capacity in order to increase VAM’s 

footprint in the U.S. and will be actively 

promoting their premium T&C 

products as well as the new High 

Torque product lines. And they have set 

their sights on becoming the leader in 

integral connections in the North 

American market. 

VAM USA remains a shining example 

of the adage that the whole is greater 

than the sum of its parts. “Despite our 

differences culturally and in our work 

styles, we share the same ultimate goal 

of supporting our customer,” Hanada 

pointed out. Harrison agreed, “This 

shared goal—along with our similar 

values of providing total quality 

management, and the passion to come 

up with the best engineering solution— 

is at the heart of the rich VAM USA 

culture and our continued success.” 

New Line 5, capable 

to thread from 9 5/8” 

to 20” in VAM USA. 

VAM USA Inspector. 



Vallourec and Sumitomo Metals 

R&D engineer exchange program 

Gabriel Briquet in the heart of the 

Gabriel Briquet is a pioneer. This young graduate of France's Ecole des Mines 

de Nancy joined Vallourec in February 2005 and is the first French R&D engineer 

specializing in VAM connections to join the Sumitomo Metals R&D department 

in Japan. The move is a tangible sign of the strengthening partnership between 

the two groups. 

Gabriel Briquet developed a passion 

for all things Japanese when 

he was a teenager. He was enthralled 

by the country's way of life and 

its language. He even enrolled in evening 

classes to learn Japanese when he 

was a student and managed to take a 

two-month internship in the land of 

the rising sun. He joined the Vallourec 

Group as an R&D Project Manager for 

VAM connections in 2004 after graduating 

from the prestigious Ecole des 

Mines engineering college. He started 

at the R&D center at Aulnoye in the 

north of France and worked closely 

with his counterparts in Japan under 

the R &D partnership agreement between 

Sumitomo Metals and Vallourec. 

Two years into his career, he was offered 

the chance to join the thousand or 

so employees at the Sumitomo Metals 

R&D center in Osaka. 

ENGINEER AND FACILITATOR 

"I have been busy working on developing 

new VAM products since I arrived 

in Japan in October 2006," Gabriel 

explained. "This is what I was doing in 

France earlier as an R&D engineer, but 

my job now has an added dimension as 

my duties include making sure that everything 

runs smoothly in the Vallourec 

and Sumitomo Metals R&D partnership. 

First and foremost, I have to make 

sure that the two R&D teams understand 

each other properly as information 

is passed between them. As well as 

being an interface, I also have to 

observe and report back on how they 

do things in Japan to ensure that we 

work together even more effectively 

and prepare the way for French engineers 

who will be coming over to Osaka 

in the future. This aspect of my work 

is absolutely fascinating and I am learning 

all the time. I give an account of 

my findings in a field report. One of 

the things I have noticed is that the 

Japanese appreciate it when their 

French counterparts speak to them 

slowly in English and pronounce each 

word clearly. It may not be what you'd 

expect, but they prefer you to make an 

Gabriel Briquet 

and Suguru Yamaguchi. 

8 


Dômo arigatô 

gozaimasu* 

partnership 

effort to get your message across 

rather than display mastery of the language 

of Shakespeare." 

GETTING ON WITH PEOPLE 

Gabriel has long understood that line 

management is more powerful in Japan 

than in France and that decisions passed 

down are not open to question. He 

respects the people he works with and 

they respect him, and he has also established 

friendships with colleagues 

outside the workplace. Although the 

fact that he speaks the language goes a 

long way to helping him fit in, he never 

forgets the social niceties which can 

sometimes elude people from the West, 

like tokens of respect, interpreting 

unspoken words, a certain modesty and 

a desire not to contradict others. He 

will no doubt explain all these social 

niceties to his colleagues at the Aulnoye 

R&D center when he returns to France 

at the end of March. 

Suguru Yamaguchi is eager 

to see France 

29-year-old Suguru Yamaguchi has been with Sumitomo Metals for 

almost five years now and is eagerly looking forward to joining the Vallourec 

R&D team. This young mechanical engineer will pack his bags for France in 

April to join the powerhouse of talent working on VAM connections at 

Aulnoye (North of France). His role will be similar to the one played by 

Gabriel Briquet in Japan (see opposite): he will contribute to the development 

of products, iron out wrinkles in the working relationship between the 

Sumitomo Metals and Vallourec R&D teams and learn about the way the 

French work first-hand. This will enable him to help Japanese colleagues who 

will be coming over to France later under the engineer exchange program run 

by the two groups. "I've only been to France once before," he told us. "That 

was just for a technical meeting. This time though, I'm expecting the exchange 

scheme to help me develop both professionally and as a person. I've been able 

to work with Gabriel Briquet, and he's told me a lot about his country. 

I can't wait to get there, but I can't promise that I'm going to eat any rabbits, 

frogs or snails!" 

* 

*Welcome 

Western countries and Japan share 

many rules of etiquette because they 

are a matter of basic courtesy–in 

other words, good sense. However, 

Japanese society is characterized by 

strict observance of these precepts 

and a host of specifics inherent in its 

culture. 

In general, self-control and a sense of 

propriety are expected. Here are some 

additional rules of conduct: 

• Do not put soy sauce on white rice. 

• Making noise while eating 

noodles is acceptable and even 

recommended. 

• There is no tipping in Japan. 

• Do not look people in the eye in 

public. 

• Do not open a gift in the presence of 

the gift-giver. 

• Offer and accept gifts with both 

hands. 

• In conversation, allow time for pauses 

so the other person can think about 

his or her response. 

• Do not put someone on the spot, 

particularly in public. 

• Do not make categorical refusals. 

• Do not gesture with your hands while 

speaking. 

• Avoid blowing your nose in public, 

especially at a restaurant. If you must 

blow your nose, cover your nose with 

your hand, or excuse yourself and go 

to the restroom. 

• Do not kiss people when you greet 

them and limit physical contact to a 

handshake. 

• Remove your shoes in homes and 

restaurants and put on slippers. 

• A simple bow of the head is 

preferable to an awkward imitation of 

the Japanese bow. 

• Do not use your chopsticks to eat 

directly from a shared dish, 

but transfer the food to your bowl 

first. 

• Always bring candy for your 

colleagues when you return from 

a trip. 

* The most polite way to say thank you in Japanese. 



VAM (Changzhou) Oil and Gas Premium 

Hand in hand with 

Construction started in November 2006 

and the first threaded tube came off the 

line in October 2007. It took the VAM 

Changzhou plant slightly less than a year 

to go from the time the diggers arrived 

through to commissioning! Vallourec 

and Sumitomo hold 51% and 49% of the 

new company's capital respectively, and 

the investment will place both partners 

in a stronger position on the Chinese oil 

and gas market 

From left to right: 

Shinichi Sasaki (Sumitomo Corp. Shanghai), 

Eric Atton (VAM Changzhou), 

Sam Eguchi (Sumitomo Metal Industries), 

Jean-Yves Le Cuziat (Formerly Division Oil & Gas) 

and Philippe Emery (OCTG Europe). 

Paul Bounie was 

clearly moved by 

the tributes paid 

to him at the ceremony 

held to inaugurate the 

VAM Changzhou plant 

on November 8. As 

Project Manager, he had 

the task of delivering the 

new production facility 

to the V & M TUBES 

Oil & Gas Division Paul Bounie 

within an extremely 

tight schedule, and deserves our heartiest 

congra-tulations for meeting the deadline. 

With the job done, he presented 

an ancient Chinese padlock to VAM 

Changzhou's General Manager, Eric 

Atton, to symbolize the handover of the 

plant. 

VAM Changzhou is jointly owned by 

Vallourec (51%) and Sumitomo (49%), 

and has all the equipment needed to produce 

high-value-added VAM connections 

in sizes ranging from 5-1/2 to 

13-3/8 inches. Thus, the plant can manufacture 

VAM TOP products, and the list 

also includes VAM FJL, VAM SLIJ II, 

DINO VAM, VAM HW and even VAM 

MUST connections. 

The joint-venture is designed to strengthen 

the positions of both groups on the 

Chinese market and to meet the growing 

needs of both state-owned corporations 

like CNPC/PetroChina (for the 

Sichuan and Tarim fields), Sinopec and 

CNOOC - as well as foreign companies 

- as the country's economy expands. As 

far as Vallourec is concerned, this new 

enterprise will also free up capacity at 

the Group's European sites. 

NO PLANT YET, BUT ALREADY 

TAKING ORDERS 

"We produced our first threaded tube at 

the beginning of October 2007," Eric 

Atton explained. "It was especially critical 

for us to keep to the schedule because 

it had been decided, well before construction 

had been completed, that the 

new plant should take on a number of 

10 


Equipment Co. Ltd 

Sumitomo 

orders for material which was originally 

to be produced in Europe. With the help 

of 150 sub-contractors – including more 

than 100 Chinese firms – we managed to 

deliver an initial shipment of 700 metric 

tons of VAM TOP 7” to PetroChina on 

time, starting on November 19th, 2007." 

We obviously needed the customer's 

approval to transfer this work to VAM 

Changzhou, and there were no objections 

- provided that product availability was 

maintained, and that the quality was equivalent 

to – or better than – the standard 

provided by other V & M TUBES plants 

in other parts of the world. 

To give credit where it is due, the 

Group's other plants played a major part 

in bringing VAM Changzhou into being 

and in getting the Chinese operators 

ready. Some key employees, like threading 

machine operators, shift supervisors 

and quality managers, were sent to 

Germany and France for training. 

The plant has been in a position to fill 

firm orders since the end of 2007, and 

the order book for 2008 is already filling 

up fast. 

ANNIVERSARY CELEBRATIONS 

Together with the announcement of the 

massive joint project to build an integrated 

tube mill in Brazil, the commissioning 

of the VAM Changzhou facility 

coincides with the thirtieth anniversary 

of the partnership between Vallourec 

and Sumitomo Metals. They could not 

have wished for a better present. Having 

a new production facility which can 

manufacture premium products to meet 

the specific requirements of Chinese 

wells gives both groups an excellent 

chance to maintain and develop their 

positions in this fast-growing market. 

“The VAM Changzhou team will soon 

include people from Japan, and the new 

company will be able to draw on the skill 

and experience possessed by its two stockholders,” 

Eric Atton remarked. “The 

recent inauguration ceremony attended 

by representatives from the Chinese 

authorities, Vallourec and Sumitomo 

marked the completion of a successful 

project – and the beginning of a great 

adventure.” 

Key dates 

April 2006: VAM Changzhou project launched 

July 2006: 

Land purchased 

September 2006: Business license obtained 

November 2006: Construction work begins 

February 2007: 

Earthworks completed 

August 2007: 

Equipment acceptance 

October 5, 2007: 

First tube produced 

October 8, 2007: Official inauguration of the plant 

November 19, 2007: First shipment of products 

Key figures 

Floor area: 

65,000 sq. meters 

Covered floor space: 

17,600 sq. meters 

Employees: 180 (end 2008) 

Range of products: VAM connections in sizes 

from 5-1/2 to 13-3/8 inches 

Production capacity: 

50,000 metric tons 

Equipment: casing threading/finishing line 

and couplings shop 



VAM Field Service Beijing 

Promoting VAM in China 

The VAM Field Service International network now extends 

its reach even further with the arrival of VAM Field Service 

Beijing (VFSB). VFSB opened for business on January 1st, 

2007, and its team of eight engineers has since been devoting 

all its efforts to customer support and the promotion of 

VAM products in China. The center is the first of its kind in 

the country, and also has the distinction of being a jointventure 

between Vallourec (51%), Sumitomo Metals 

(36.75%) and the Sumitomo Corporation (12.25%). 

33-year-old Damien de Montlebert has 

already gained a great deal of experience 

in VAM products in a career 

which has taken him from Scotland to 

France, then back to Scotland again 

before moving to China in January 

2007. His role as VAM Field Service 

Beijing's General Manager is to get the 

center up and running, and develop 

VFSB's business. 

The main function of VAM Field 

Service International's field service 

engineers is to provide assistance to 

users of VAM products at the rig site. 

This mainly means checking that everything 

is done according to recommendations 

before, during and after 

VSFB Engineer (Mr. Zhang Wen Yu) inspecting 

a VAM TOP connection. 

the process of making up the connections. 

They examine the condition of 

threads, make sure that the right 

amount and the right type of grease is 

applied, ensure that suitable equipment 

is used in the correct way, specify tightening 

torque values, interpret data, 

come up with solutions if problems 

occur, and so on. 

MORE THAN JUST 

FIELD SERVICES 

"This is where VAM Field Service 

Beijing stands out from most of the 

other companies operating in this business," 

Damien de Montlebert told us. 

"Although assistance on site will 

account for a large part of our work 

later on, both Vallourec and Sumitomo 

were particularly eager to use this jointventure 

to establish a technical center 

to showcase VAM products in China. 

Our job is also to handle technical sales 

promotion and we can offer customers 

help in selecting the most suitable VAM 

connection solution for the characteristics 

of their wells. We also inspect 

tubes on delivery to comply with contractual 

requirements imposed on our 

customers by the large state-owned 

companies. This part of our business is 

a special feature of the Chinese market 

and accounts for a significant part of 

our income. We act as sub-contractors 

for Vallourec or Sumitomo and perform 

the inspections using the same 

testing equipment as at the production 

site. On top of this, our job includes 

providing technical support to the growing 

number of VAM licensees in 

China." 

China is developing rapidly, but the use 

of premium connections is less widespread 

than elsewhere in the world. 

The creation of VFSB is a truly determination 

of the two groups to increase 

its VAM presence in China. 

Damien de 

Montlebert. 

12 


Vallourec & Sumitomo Tubos do Brasil Ltda. 

Two groups join forces 

in ambitious project 

The foundation stone of the Jeceaba integrated tube 

mill was laid on 07/07/07 (July 7, 2007). The new Brazilian 

facility is being jointly built by Vallourec and Sumitomo, 

and project directors Christoph Prasser and Hisashi 

Nakagawa and project leader Otavio Sanabio have less 

than three years to get this ambitious production complex 

up and running. 

“ 

There are more than forty 

people now working almost 

full-time on Vallourec & 

Sumitomo Tubos do Brasil Ltda," 

explains Christoph Prasser, the Project 

Director appointed by Vallourec. "The 

members of the VSB project team come 

from three continents, Asia (Japan), The 

Americas (Brazil), and Europe (France 

and Germany). There must now be 

several hundred people already involved 

in the construction of this new integrated 

tube mill. The challenge is to get 

the mill running in Brazil despite any 

differences of national or company cultures" 

Frédéric Arnou, who is responsible for 

monitoring legal, financial and fiscal 

aspects of VSB on behalf of Vallourec, 

told us that "one of our colleagues at 

Sumitomo has dubbed this project "555" 

- pronounced "gogogo" in Japanese". 

This reflects both the size of this 1.6 billion 

dollar project as well as the enthusiasm 

it is generating among both parts 

of the project team. 

GREAT VERSATILITY 

This state-of-the-art complex is to 

make steel using liquid pig iron, chiefly 

due to the nearby availability of the 

raw materials needed: iron ore and 

charcoal. The site is 65 km from the 

Pau Branco mine operated by V & M 

Mineração. V & M Florestal has huge 

eucalyptus forests in the North and 

North-Eastern parts of Minas Gerais 

state which produce the wood used to 

make charcoal . "What makes the steelworks 

so special though," stressed 

Christoph Prasser, "is that the site has 

an electric arc furnace which will be fed 

with both liquid pig iron and scrap 

from our own sources." 

The plant will have the capacity to produce 

a million metric tons of raw steel 

a year in the form of billets. 700,000 

metric tons of this will go to the tube 

rolling mill, with the rest being used 

by Vallourec to reduce dependency on 

external sources of supply. 

FOCUS ON OCTG 

PRODUCTS 

The standard SMS-Meer Premium 

Quality Finishing (PQF) rolling mill 

will offer a total capacity of 600,000 

Christoph Prasser 

Frédéric Arnou 

Pierre Verluca, Chairman of Vallourec’s 

Management Board, and Hiroshi Tomono, 

President of Sumitomo Metals, signed the 

Vallourec & Sumitomo Tubos do Brasil Ltda 

joint-venture contract on July 19. 



V & M FLORESTAL 

••• 

metric tons of seamless tube a year, 

with Vallourec and Sumitomo having 

an equal share of 300,000 metric tons 

each. "The two partners will both 

remain in full control of their own 

marketing activities," Frédéric Arnou 

told us. "This will mean 10% more 

tubes a year for Vallourec, and around 

30% for Sumitomo." 

The heat treatment lines will have 

plenty of capacity to allow a large proportion 

of production to be devoted 

to the oil and gas market to meet growing 

demand for premium products. 

The mill will specialize in seamless 

OCTG tubulars and will also have the 

CNC lathes needed to machine and 

thread VAM ® connections. Sizes will 

range from 6-5/8" to 16" in diameter. 

The mill will also have a robotized 

stock control system using tags to provide 

full traceability for each tube as it 

passes through the various stages of 

the production process. 

AHEAD OF THE FIELD 

This new company will eventually have 

around 1,500 employees, and the two 

partners expect that the joint venture 

will enable them to anticipate future 

market changes. In line with many analysts, 

both groups are banking on continued 

growth and increased worldwide 

demand for seamless tubes. 

Vallourec's production sites are now 

working flat out, and the Group needs 

to acquire additional capacity to maintain 

its position as market leader - particularly 

for premium products and 

tubes for the energy sector. Falling 

behind is not an option. 

Jeceaba enjoys good road and rail links 

and has access to the deep-water port 

at Sepetiba to the South. Supply of 

electric energy and a gas pipe line are 

nearby. Naturally enough, the new 

integrated tube mill will export products 

to North America, the Middle 

East and Africa. 

The ceremony took place on July 7 

(an auspicious day as the number seven is 

considered to be a lucky number in Japanese 

culture), and was attended by executives 

from Vallourec and Sumitomo Metals, 

as well as Brazilian officials. On this special 

occasion, a seamless tube was used to 

symbolize the first foundation stone. 

Barreiro 

Pau Branco 

Jeceaba 

Vallourec & Sumitomo 

Tubos do Brasil 

Sepetiba 

Port 

V & M do BRASIL 

V & M MINERAÇÃO 

Railway 

Rio de Janeiro 

14 


On October 11th, 2007 at the Group's 

headquarters, Managers from both companies 

celebrated the 30-year partnership. 

30 years 

of innovation 

30 years 

of success 



05/11/1965 

06/02/1976 

1976 

Kainan plant 

VAM first patent 

Signature of 

the VAM License 

Agreement 

Patent VAM FJL 

1993 

1994 

1995 

2000 

Creation of 

VAM FAR EAST 

(51% V & M TUBES – 49% Sumitomo) 

Renewal of the 

VAM License Agreement 

Patent VAM SLIJ II 

and DINO VAM 

Patent CLEANWELL 

21/11/2006 

02/08/2006 

28/03/2007 

07/07/2007 

First stone laying 

ceremony of the new 

Chinese threading plant 

VAM Changzhou 

Creation of VAM 

Field Service Beijing 

(51% V & M TUBES – 36.75% Sumitomo 

Metals – 12.25% Sumitomo Corp.) 

Opening capital of 

VAM Changzhou to Sumitomo 

Vallourec and Sumitomo 

lay the cornerstone 

of the Jeceaba Plant, 

the new pipe plant in Brazil 

16 


27/08/1984 

11/04/1985 

10/11/1986 

1990 

Signature of the VAM USA 

Partnership Agreement / 

Creation of VAM USA 

(51% V & M TUBES – 49% Sumitomo) 

Signature of the R&D 

agreement 

(renewal in 1995 and 2005) 

PT Citra Tubindo 

Subcontracting 

Agreement 

Patent VAM TOP 

2002 

27/05/2002 

10/02/2005 

27/04/2006 

Celebrating 25 years 

of VAM partnership 

Acquisition 

of V & M STAR 

Celebrating 20 years 

anniversary of VAM USA 

Aulnoye testing 

facility extension 

inauguration 

19/07/2007 30 years of 

TEC and TAC Meeting 

And tomorrow: 

... 

New Pipe mill in Brazil: 

Vallourec and Sumitomo 

Metals sign the joint venture 

agreement of the new pipe 

mill in Brazil 

TEC: technical meeting 

TAC: technical advisory 

committee 

V & M R E P O R T - O I L & G A S D I V I S I O N S P E C I A L I S S U E N R . 1 1 - A P R I L 2 0 0 8 

17


V & M TUBES Facilitates Upsurge in North Sea HP-HT Activity 

Pushing Back the Boundaries 

V & M TUBES, Oil & Gas Division, has engineered, tested and manufactured 

all of the casing for the North Sea’s highest pressure well, to 

date. The well spudded in October 2007 and will set a new milestone 

in High Pressure-High Temperature development in the region, when 

completed in February 2008. 

Jackdaw Well Schematic. 

This project requires casing and 

connections that provide a new 

level of performance using the 

latest generation of gas-tight, metal-tometal 

seal VAM connections. 

One of the key requirements of both the 

connections and the materials is to minimise, 

as far as possible, the risk profile 

of the well. This is achieved through 

applying advanced design methods, performing 

rigorous qualification tests and 

ensuring the products are manufactured 

with the highest possible levels of 

quality assurance. To further ensure that 

operational risks are mitigated, Vallourec 

Mannesmann Oil & Gas UK (VMOG 

UK) provides supervisory services for 

both onshore and offshore activities. 

DESIGN INVOLVEMENT 

VMOG UK has been involved with the 

project from the initial conceptual 

designs, which were based on tried-andtested 

HP-HT connections (VAM HW- 

ST). As the full scale of the challenges 

thrown up by the well conditions was realised, 

later generation connections were 

chosen to complement the extremely 

heavy-wall pipe. The connections required 

to satisfy the need for higher compression, 

higher external pressure and 

greater clearance than the existing 

designs. 

The solutions included the dual-seal 

VAM HP for use on both 10-3/4” 110.4 

lb/ft VM110SS production casing and 7- 

5/8” 55.3 lb/ft VM110SS contingency 

tie-back casing strings. In addition to the 

new weights of VAM HP, a heavy-weight 

version of the VAM TOP HC was designed 

for use on 7” 42.7 lb/ft VM125CY 

production liner. All of these connections 

required bespoke engineering design 

work. 

All new connection designs were evaluated 

through state-of-the-art computational 

analysis using V & M TUBES’ 

preferred Finite Element Analysis (FEA) 

18 


software (see Figure 1), before embarking 

on full ISO 13679 physical qualification 

tests, where required. 

CONNECTION 

TESTING 

Once the new connections had been 

developed, a substantial programme of 

physical testing was commissioned. 

There are a only a limited number of 

test facilities in the world that are equipped 

to perform OCTG connection 

tests, so the initial challenge was to project 

manage the six ISO 13679 qualification 

tests, in a timely fashion. With 

time-scales of approximately two to 

three months each, inter-continental 

collaboration with sub-contractors in 

Scotland and the USA, as well as V & M 

TUBES’ facilities in France and 

Houston, was required to successfully 

complete the connection testing. 

The reduced number of samples on 

three of the tests (see table) is indicative 

of the extensive qualification test 

data that already existed. 

ADVANCED 

MANUFACTURING 

TECHNIQUES 

HP-HT products often need complex 

manufacturing techniques. Most of the 

connections require special surface 

finish or end-sizing, and the pipe is offered 

with tighter tolerance on the wall 

thickness (a minimum of 90% nominal) 

or yield (VM125CY) and corrosion 

testing (VM110SS). 

Most notably, the 3-1/2” work-string 

is a completely non-standard product. 

The complex heat treatment of 

VM110SS needed to be adapted for this 

small OD but heavy-wall product. 

CONTINUING 

TECHNICAL SUPPORT 

Following delivery of the casing and 

tubing, V & M TUBES is continuing 

to support this project through analyses 

of casing hangers, equipment logistics 

and offshore running. 

VMOG UK has an enviable track 

record with regards to HP-HT wells, 

having supplied casing and tubing for 

Total’s Elgin-Franklin project and 

Shell’s Shearwater, Aragorn and Onyx 

Connection 

projects, to name but a handful. In 

addition to this well, the company has 

a further eleven HP-HT wells on its 

order books for imminent delivery. 

V & M TUBES is proud of its involvement 

in these projects and is keen to 

further enhance its long-standing HP- 

HT experience. 

THE CONNECTIONS WERE TESTED TO THE FOLLOWING LEVELS 

Qualification Test 

13-5/8” 88.2 lb/ft VAM TOP-NA FEA Extrapolation 

10-3/4” 110.2 lb/ft VAM HP FEA Extrapolation 

9-7/8” 66.9 lb/ft VAM TOP-NA ISO 13679 CAL IV 

7” 42.7 lb/ft VAM TOP HC-NB ISO 13679 CAL IV 

7-5/8” 55.3 lb/ft VAM HP ISO 13679 CAL III 

7-5/8” 39 lb/ft VAM SLIJ-II ISO 13679 CAL III 

4-1/2” 18.9 lb/ft VAM TOP ISO 13679 CAL IV 

3-1/2” 18.35 lb/ft VAM TOP ISO 13679 CAL IV 

LP12 

Tension 

33% 

CYS 

+ 

EP 100% 

API5C3 

Threaded Coupler. 

Figure 1: FEA Analysis of VAM HP. 



Development of Smart High Performance: Drill Stem 

The continuous developments in oil and gas drilling operations have 

resulted in a significant increase in the application of extended reach 

wells and horizontal drilling procedures as well as HP/HT downhole 

conditions. These deeper and more deviated wells require the use of a 

drill string that has both higher torsional yield strength drill pipe body 

and greater torque capacity tool joints than is afforded by standard API 

connections. 

Also, the combination of complex 

well profiles with HP/HT conditions 

down-hole can lead to even 

higher stresses on the drill string, therefore 

requiring greater safety margins in 

the drill string design. 

Also, due to high financial risks associated 

with drilling operations today, oil & 

gas companies are continuously looking 

at mitigating drilling risks and reducing 

total drilling costs. This involves optimizing 

drilling programs and drilling efficiency. 

Improved efficiency is generally associated 

with higher rates of penetration 

(ROP) and lower non-productive time 

(NPT). An accurate drill string selection 

prior to operations planning can help 

achieving these targets. A number of 

factors related to the drill string assembly 

can be considered to optimize drilling 

performance. Among them: 

• Pipe and tool joint dimensions for 

hydraulics efficiency; 

• Pipe yield strength for torque & drag 

optimization; 

• Pipe body, weld and connection mechanical 

properties for tension and torsion 

capacity; 

• Other drill pipe design related features 

for fatigue resistance, service-ability 

and operating cost optimization. 

New OD/ID ratios used on drill pipe, 

dictated by hydraulics requirements, have 

required new thread designs called 

“Premium Connections”. Recent high 

torque tool joint connection designs have 

been focused on highest mechanical performance 

capabilities, generally to the 

detriment of drill pipe runability and 

durability, compared to API connections. 

Starting from this, VAM Drilling has 

developed a new smart rotary shoulder 

connection that provides optimum operational 

performance to extreme drilling 

conditions with minimum impact to conventional 

rig tools, standard handling 

procedures and minimum service cost. 

DESIGN AND QUALIFICATION 

This premium connection incorporates 

a proprietary thread profile and highperformance 

double shoulder design 

producing a rugged high-torque connection. 

The primary torque shoulder 

provides initial seal and pre-load during 

make-up to full recommended torque 

and the secondary torque shoulder provides 

high torque capacity. 

The thread form features a large, rounded 

stab crest and a laid down stab flank 

which allow easy stabbing of the connection. 

A back bevelled crest reduces 

the chance of wedging the thread and 

increases the freedom of movement, 

allowing easy connection make-up. The 

elliptical root increases resistance to 

rotational-induced bending fatigue. 

FEA MODELLING USED IN THE DEVELOPMENT OF VAM EXPRESS 

20 


Rotary Shouldered Connections 

The design has been subjected to rigorous 

engineering analysis. These 

include full FEA modelling for pure 

torque loads and combined torque & 

tension loads. 

During the final stages of the connection 

development, the design has been 

subjected to live testing in the following 

conditions: 

Well: Heather 1-5 

Depth: 18150 ft 

Hole: 6-1/2” 

Section profile: Straight 

Rig equipment: Varco Top Drive and 

Iron Rough Neck 

Top Drive Torque: Average 3300 ft-lbs 

Top Drive RPM: 40 

Drill Pipe: 4 inch, 14# S135 pipe, 4 

7/8” OD x 2 13/16” ID tool joints, with 

VAM Express VX 39 

Typical Bottom Hole Assembly: 

Drill Bit, Turbine, Stabilizer, 14 Drill 

Collars, Jars, 3 Drill Collars, 6 HW 

Thread Compound: Bestolife Copper 

Supreme Special Blend 

Typical average rate of penetration: 

3 to 4 ft/hr 

RESULTS 

• Consistent connection running 

• No connection reject related to stabbing, 

make-up or drilling operations 

• Trip time in line with expectations 

PERFORMANCES 

High Torque: VAM Express has torsional 

strength that provides torque 

capability 1.5 to 2 times that of API 

connections. It allows change of OD/ID 

for improved hydraulic performance. 

Greater safety margins: High torque 

to yield resistance, progressive failure 

mode if overtorqued, optimized behavior 

for HP/HT drilling conditions. 

Quick rig make-up: 5-6 turns from 

stab-in to full make-up similar to API 

connections with trip-time savings up 

to 16% better than other high-performance 

connections. 

Connection 

API NC38 5.5 

VAM Express 5.7 

Turns stabbed 

to shouldered 

Other Premium Up to 13 

Connections 

Extended service life: VAM Express 

has been designed to minimize damage 

risk during use and recut tong loss when 

a recut is required. Specifically, the 

connection provides: 

• Limited stabbing risk: enhanced 

clearance between box counterbore 

and pin nose 

• Reduced wedging risk on threads 

• Improved pin nose durability 

• Improved drill string fatigue life: 

the patented design includes an 

elliptical thread root that increases 

the connection’s resistance to 

rotational bending fatigue. 

FIELD PROVEN 

Improvements in terms of runability 

and service life of the product have been 

experienced during recent drilling operations 

in Thailand, with VX 39 drill 

pipe rented by Weatherford to 

Chevron. 

The drill string was composed with 500 

joints of Drill Pipe and 30 joints of 

Heavy Weight Drill Pipe. It was used 

by Chevron between May and October 

2006, which gives a 6 month period of 

analysis. 

Seven 6 1/8” hole sections were drilled 

with this pipe, at an average depth of 

11 500 feet. Deviation was between 40° 

to 70°, average bottom hole temperature 

was 125°C, nominal pressure and 

mud weight 9.6 ppg. “The use of this 

drill pipe solved excessive ECD problems 

experienced with another brand 

of drill pipe”, said Chevron. “The prime 

reason for Chevron hiring this string 

of 4” VX39 was to improve our mud 

ECD and cuttings transport. We had 

stuck 3 bottom hole assemblies (recovered 

only 1) before switching to 4” 

VX39. After the switch, we enjoyed 

lower ECD’s, better hole cleaning and 

equal or faster trip times”, they added. 

“At the end of the campaign, there were 

17 connections that required repair (9 

Pins and 8 Boxes) due to sea air corrosion”, 

said Dale Potter, Weatherford. 

This drill string is currently being used 

in Thailand by Chevron, for another 6 

month period, during which improved 

hydraulic characteristics and low repair 

rates will be re-confirmed. 

CONCLUSION 

This analysis of drilling records with 

this new tool joint connection has 

shown significant improvements in both 

mechanical performance and operating 

costs: 

• Torque capability up to 2 times that 

of API connections, resulting in optimum 

resistance in harsh environments; 

• Significant trip time savings, up to 

16% compared to competing products. 

This translates into thousands 

of dollars saved for 1 deep offshore 

well today; 

• Extended service life and reduced 

operating cost as a result of fewer 

recuts and less refacing operations. 

Improvements in terms 

of runability and service 

life of VAM Express 

have been experienced 

during recent drilling 

operations. 


SERVICES 

VAM Field Service Angola: 

Right at the heart of 

Angola’s oil industry 

A new VAM Field Service Company has just been created in the 

Angolan capital, Luanda. The purpose of this Service Center is 

to participate in the expansion of the oil industry in this area of 

South-West Africa which is increasingly turning to the VAM 

family of premium connections. 

Nicolas Dupont 

We spoke to Nicolas Dupont, 

the General Manager of 

VAM Field Service International. 

"Up until now, the assistance 

we offered to oil companies operating 

in Angola, like Esso, BP or Total, used 

to be provided by VAM Field Service 

technicians based at our service center 

at Aberdeen in Scotland. There were 

several reasons behind our decision to 

set up a separate center in Angola. The 

expansion of oil activities in the country, 

particularly in deep-sea offshore 

fields, has significantly increased the 

use of VAM TOP line products. 

Another consideration was the increasing 

need for on-site assistance, as 

projects become more technically challenging 

and the financial stakes get higher. 

The time had come to create VAM 

Field Service Angola, an Angolan company 

employing a team of experienced 

local technicians trained to use the procedures 

applied in all of the VAM Field 

Service centers in our international 

network." 

WARMLY WELCOMED 

INITIATIVE 

VAM Field Service Angola was created 

to meet a growing demand for 

assistance in the area, and the opening 

was extremely well received. Its legal 

structure and the nationality of its staff 

fit in with the policy of "angolanizing" 

the domestic oil industry pursued by 

the government and by Sonangol (*). 

V & M TUBES works in partnership 

with customers operating in Angola 

and is therefore willing to contribute 

to their effort in industrializing the 

country. 

"We expect to operate with a team of 

four employees by end 2008 to support 

the customer requirements" explained 

Nicolas Dupont. We can also draw on 

staff from other VAM Field Service 

International centers if there is a large 

increase in the workload. Our office in 

Luanda is located in the SONILS oil 

base facility, right next to the drilling 

and completion teams we deal with." 

VAM Field Service Angola commercial 

terms allow customers to choose 

to access the services on call-off basis 

or through service contracts ensuring 

the flexibility and reactivity of dedicated 

resources". This way of doing 

things has proved to be successful to 

operators whose drilling schedules are 

by nature subject to rapid changes." 

* Sonangol is the national Oil company responsible 

for the management of Angola's oil and gas 

reserves and is at the forefront of the continuing 

drive to develop the country. 

An international network of service centers 

CONTACT US 

VAM Field Service International consists of a network of service centers dedicated to 

support the VAM family product line. It brings together around a hundred field service 

engineers and technicians based in the main oil-producing areas in Europe, Africa, Middle- 

East, North America, South America, Southeast Asia and China. These experts routinely 

work on platforms - both offshore and onshore as well as at sub-contractors who thread or 

assemble the connections on tubular accessories. Their job is to perform VAM connection 

inspections or pipe running supervision, from quality control to consultancy and quality 

assurance to ensure compliance to best practices. 

VAM ANGOLA 

Sonils Business Centre 

(Office 015) 

Rua 6-1L Boavista 

Luanda 

Republic of Angola 

Phone: +244 222 670 439 

Fax: +244 222 310 910 

22 


EVENTS 

V & M TUBES sponsored 

the 10th edition of the 

Expandable Technology Forum 

V & M TUBES was very glad to sponsor the 10th edition of the Expandable 

Technology Forum (ETF) on October 30th, 2007. The venue was the 

famous Chateau Pommery in Reims, one of the best caves in Champagne. 

With almost 80 people who attended this meeting was one of the major 

contributions to the Expandables technology this year. 

V& M TUBES is the most supportive 

OCTG supplier for the 

expandables industry and since 

the early 2000’s. Logically the group is 

also the first pipe manufacturer to host 

an ETF bi-annual meeting. Attendees 

were mainly experts of this innovative 

technology in their company and almost 

all the major players in this business joined. 

No doubt that these two days were 

a great success with almost twenty presentations 

and a lot of fruitful discussions 

and exchanges between the engineers. 

During the last eight years, V & M 

TUBES has designed and tested a lot 

of different type of threads in order to 

push forward the limits of the solid 

expansion in Situ. In the meantime three 

new proprietary 

grades of seamless pipe were created. 

In the beginning of 2007, 

the very first premium product 

line for Expandables became 

available. It is mixing proprietary 

grades as VM50 ET or 

VM80 ET with a new metal to 

metal thread the VAM ET WISE ® . The 

pipe and connections are available in 

various sizes from 4 1/2” to 11 3/4” and 

can be expanded in a large range of final 

internal diameters. 

After six months of tests and trial in situ 

without any related issue, the premium 

••• 


E V E N T S 

••• 

connections of the new VAM ET 

WISE ® product line have been successfully 

expanded during their two first 

commercial jobs in the Middle East in 

July and in September. Two strings of 

threaded joints with an initial diameter 

of 5 1/2” have been actually run in existing 

– but old and unproductive – wells 

of a major company. The expansion to 

a 6 1/4” final diameter has been operated 

by Weatherford which has selected 

the new product of V & M TUBES. 

These expanded strings – with their respective 

lengths of 1100 feet and 1600 

feet – were used to deploy new “intelligent 

completion” equipments. The final 

user has by now recovered a very good 

oil production in his two wells. He was 

also very satisfied by the performances 

and reliability of the VAM premium 

threads. We expect these successes will 

help in increasing quickly the use of this 

new product line. 

The ETF (Expandable Technology Forum) commenced 

in February 2003. The forum was initially 

funded by the European Drilling Engineering 

Association and the Production 

Engineering Association in partnership, 

although it is now an independent forum with its own membership. 

The ETF have no geographical focus (meetings are held 

in both Europe and the US). The aim of the forum is to share 

knowledge and experience of applying the technology, thereby 

helping the uptake of the technology by oil companies worldwide. 

The ETF cover both solid expandable tubulars (SET) and 

expanding sand screens (ESS) so is of interest to both drilling 

and petroleum engineers. It is not a commercial forum; the presentations 

are technical papers, not marketing presentations. 

Shell, BP, Statoil, Enventure Global Technologies, Weatherford and 

Baker Oil Tools were previous sponsors of the ETF former events. 

24 V & M R E P O R T - O I L & G A S D I V I S I O N S P E C I A L I S S U E N R . 1 1 - A P R I L 2 0 0 8

SPOTLIGHTS 

V & M TUBES participated to the SPE/ATCE exhibition in Anaheim, California 

V 

& M TUBES has participated to the Society of Petroleum 

Engineers' Annual Technical Conference and Exhibition (ATCE) 

which was held on November 11th-14th, 2007 in Anaheim, 

California. The SPE/ATCE is the leading technical conference in the 

E&P world. The conference attracted more than 8,000 oil & gas 

E&P professionals to Anaheim. 

V & M TUBES’ booth displayed its complete product range offer 

and service in North America including: 

• Drill pipe, heavyweight drill pipe, drill collars, non-magnetic drill 

collars and MWD housings, safety valves, and accessories for all 

drilling applications through VAM Drilling. 

• VAM Premium Connections for Tubing and Casing including its 

new High Torque connection: VAM HTF. 

• Casing and Tubing seamless pipes 

Experts from each division were present to answer questions. 

In 2008, V & M TUBES will participate to this event, which is being 

held this year on September 21st-24th at the Convention Center in 

Denver, Colorado. 

V & M TUBES has issued 

2 new brochures 

New Vice-President of 

the Oil & Gas Division 

of V & M TUBES 

The CLEANWELL leaflet dedicated to the actual product 

offer is now available. CLEANWELL is the complete solution 

from VAM which replaces both storage and running 

compounds. It is an innovative coating applied once in 

the mill or in a VAM licensee workshop on VAM leading 

product lines. CLEANWELL is a real step change from 

the mill to the rig and beyond in your wells. 

The VAM HTF leaflet is also available. 

VAM HTF (High Torque Flush) is a true flush OD and ID integral 

connection providing maximum clearance along with 

superior torque strength for challenging applications such 

as drilling with casing, liner rotation to achieve better 

cementation in highly deviated and critical wells. 

To order a copy, please email it to: 

hassna.belmalek@vmtubes.fr 

Jean-Yves Le Cuziat Pierre Frentzel 

As of January 1st, 2008, Pierre 

Frentzel has now taken up his 

position as the new Managing Director 

of the Oil & Gas Division of V & M 

TUBES. He succeeds Jean-Yves 

Le Cuziat who is now Managing 

Director of the E & I Division (formerly 

HRT Division). 


25

SPOTLIGHTS 

VAM CANADA 

Edmonton 

Vallourec acquires three 

businesses bringing high 

added value 

On October 30, 2007, the Group announced it had 

reached an agreement with Grant Prideco regarding 

the acquisition of Atlas Bradford ® Premium Threading 

& Services, TCA ® and Tube-Alloy. 

Atlas Bradford ® is recognized in North America as 

a leading supplier of premium OCTG and will complement 

Vallourec’s VAM ® product offering, providing 

key expertise in integral connections for the 

industry’s most demanding applications. 

TCA ® specializes in heat-treatment operations and 

markets high-grade tubular products with a strong 

focus on short-lead-time orders. TCA ® will provide 

Vallourec with additional premium capacity, specific 

expertise in sour services, and a clear geographical 

fit enabling Vallourec to extend its North 

American footprint. 

Tube-Alloy produces and repairs down-hole tubular 

accessories for the oil & gas industry, and specializes 

in complex threading and machining for 

custom-made orders. Combining this new activity 

with Vallourec’s international client base will open 

up interesting growth opportunities for the Group. 

All three companies have an excellent track record 

for providing premium connection technology and 

excellent customer service. 

As this issue went to press, the agreement was 

awaiting customary regulatory approvals. 

* Grant Prideco: international group specialized in drilling products 

(drill rods, connections, collars, etc.). 

TA – Casper 

Wyoming 

TCA – Muskogee 

Oklahoma 

TA – Houston 

Texas 

AB – Houston 

Texas 

VAM MEXICO 

Veracruz 

Vallourec in North America 

1,700 people (September 07) 

TA – Saint John’s 

NewFoundland, Canada 

Vallourec Tubes Canada 

Burlington 

V & M STAR 

Youngstown 

Valtimet Inc. 

Morristown 

TA – Broussard 

Louisiana 

TA – Houma 

Louisiana 

V & M STAR 

VAM USA 

VAM DRILLING USA 

V & M Tubes Corp. 

Houston 

New businesses 

+ 700 people 

Lutero Gouvea, V & M TUBES coordinator 

at Petrobras RN-CE, receives the prize of best supplier. 

Recognition of V & M do BRASIL 

by Petrobras 

On November 7th, 2007, V & M do BRASIL (VMB) was awarded 

the prize of Best Goods Supplier in the category of big contracts 

by the Unit of Petrobras in Rio Grande do Norte and Ceará (UN-RNCE). 

UN-RNCE gave this prize of “Best Suppliers of Goods and Services” 

as a recognition to the best performers in 2006. 

Out of the 1,800 companies that provide goods or services to 

UN-RNCE, only 23 were among the finalists. Out of these, eight were 

awarded the prize, 4 suppliers of goods and 4 of services. To qualify 

for the contest, companies went through a rigorous process of selection, 

evaluating quality, efficiency and adequacy of products and services 

provided. 

According to Lutero Gouvêa, who is the Coordinator of VMB’s 

Subsidiary in Mossoró, the main reasons for this achievement were: 

meeting the deadlines, price and quality of the services. Lutero said 

"Our difference is the customized service. As we work at the same site 

of Petrobras, we know the real needs of the client, which differentiates 

us even from our largest competitor, who was also a contestant". 

V & M Beijing received the first 

VAM HP order from China 

V 

& M Beijing received the first VAM HP order in China for well 

No.CK-1 in Sichuan basin, China. 

The well no.CK-1 is the top three deepest well in China, but with most 

sever geological conditions combining H2S and salt dome. The forcasted 

bottom hole temperature is 210oC and pressure 159 MPa. 

With its good communication channel and most sophisticated experience 

dealing with HTHP wells, V & M Beijing involved in this project 

at the stage of design for material and connection selection. 

The specification of this order including: 

273.05x18.64mm VM140HC /VM110HCSS VAM HP 

193.7x17.45mm VM140HC/VM110HCSS VAM HP 

Background: 

Sichuan Basin located in South-West China belongs to one of the 

most critical area in China for natural gas with H2S content up to 

15% and CO2 content up to 12%. 

V & M Beijing is one of the most important suppliers to this area with 

material covering VM110SS, VM110HCSS, VM140HC equipped with 

VAM TOP, VAM FJL, VAM MUST. 

26 


Client visit in Aulnoye drill plant 

L 

ast 5th and 6th December, VAM Drilling had the pleasure 

to welcome in Aulnoye-Aymeries (our drill plant 

in North of France) representatives from Turkmengas and 

Turkmenneft. Our guests coming from Turkmenistan had 

the opportunity to visit the drill plant and to attend a presentation 

of our product lines. This wonderful time spent 

together is good basis for our future collaboration. 

VAM Drilling School 

for Weatherford Brazil 

Saudi Aramco Drilling Symposium 

During October 2007, VAM Drilling organized a VAM 

School assessment and training session with 

Weatherford operations in Vitoria, Brazil. The assessment 

was focused on the optimization and maintenance procedures 

for Drill Pipe Riser (DRP) with WO-SR connection 

type that Weatherford has been operating for Petrobras 

since 2000. The training session covered running and inspection 

procedures for a VAM Riser high pressure metal to 

metal seal connection (WO-HP) that Weatherford and 

Petrobras will operate in deep subsea wells completion and 

workover. 

L 

ast 1st and 2nd December took place in Al-Khobar the 

Saudi Aramco Drilling Symposium. We did present during 

the conference a technical paper on Hydroclean TM based on 

a successful case study, written with Hapiztuddin Mangor 

from Talisman Energy and Raymond Elder from COR (Certified 

Oilfield Rental). Also, we were selected to display our most 

recent connection development, VAM Express TM . 


27

OCTG NÂ°8 DEF.qxd (Page 1) - VAM Services

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