. V&M R OCTG n. 4 |OK| - VAM Services

V&MREPORT 

O C T G D I V I S I O N S P E C I A L I S S U E JANUARY 04 - #4 

Innovative 

solutions for 

the OCTG business 

www.vamservices.com

Summary 

Editorial 

Petrobras 

V & M do BRASIL establishes 

a Partnership Agreement 

with Brazil’s largest oil company 

Customer satisfaction 

First Point Assessment innovation 

in customer satisfaction 

Environmental Protection 

CleanWell ® : our solution to 

sustainable development 

VAM ET 

Ready to serve the SET market 

HPHT Development 

Casing & tubing developments 

for HPHT applications 

Innovation Drill Plant 

Striving for continuous Improvement 

Spotlights 

V&MREPORT 

O C T G D I V I S I O N S P E C I A L I S S U E 

Publisher 

VALLOUREC & MANNESMANN TUBES 

130, rue de Silly, 92100 Boulogne - France 

Editorial Team 

Hassna Belmalek - Phone: + 33 1 49 09 35 83 

E-mail: hassna.belmalek@vmtubes.fr 

Alain Lancry - Phone: + 33 1 49 09 37 77 

E-mail: alain.lancry@vmtubes.fr 

Fax: + 33 1 49 09 37 13 

Production 

Zabriskie., Paris 

Design 

LeGrand8, Paris 

Photographs 

VMB, Shell, Vallourec, Thierry Truck, or as mentioned otherwise 

All rights reserved 

4 

6 

7 

8 

10 

12 

13 

Innovation is a key value of our Company and is a strong differentiation 

factor recognised by our customers. Being innovative should 

be an on-going priority of the management whose responsibility is 

not only to manage the business in the short and medium term but 

also to prepare the future of the company and of its employees. 

This V&M report magazine gives interesting examples of innovations 

in the OCTG division. 

When speaking about innovation, new products development comes 

naturally to mind. As far as new products development is concerned, 

the division has plenty of live projects that will strengthen our technical 

leadership in OCTG. Let us quote 

for example the tubular expansion technology, 

the grease free making up of 

VAM joints, or the products developed 

for the severe well conditions of High 

Pressure/High Temperature wells in the 

North Sea. 

But the innovative spirit should not limit 

itself to the area of product development. 

Creation of improved or new services is 

also a priority for our business. The examples 

of the supply chain services developed 

Jean-Pierre Michel 

by VMOGUK and V&M do Brasil are good models to analyse and 

to emulate. We are pleased to find innovative ideas and practices, 

even in areas such as measurement of customer satisfaction or in 

implementation of Continuous Improvement in the drill pipe plants. 

So let us apply our innovative efforts to all processes of our business, 

as it is a way to be more efficient, more competitive and to contribute 

greatly to our continuous improvement programmes. 

Jean-Pierre Michel, 

Managing Director - OCTG Division 

V & M R E P O R T - O C T G D I V I S I O N S P E C I A L I S S U E

BR 

Petrobras 

V & M do BRASIL es 

Agreement with Brazil’s 

V & M do BRASIL and Petrobras, the Brazilian giant company dealing 

in Oil and Gas Exploration, Production, refining, transport and 

distribution, both in Brazil and abroad, signed a major Partnership 

Agreement in April 2002, amounting to some US$ 400 million. 

Under the agreement, VMB should meet the demand for steel pipes 

(casing, tubing and line pipe), accessories and associated 

services, arising from Petrobras Exploration and Production (E&P) 

upstream activities, for a five-year period, implementing five 

logistic bases in areas operated by the state company. 

A 

M 

v 

p 

d 

c 

M 

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bo 

4 

“Many benefits are 

expected from a 

partnership of such 

scale. In special, we can mention 

agility in acquiring pipes, the 

reliability of products supplied, a 

significant reduction in stocks, 

optimization of processes, and 

integrated management of the 

entire supply chain, with the associated 

economies of scale”, asserts 

Mr. Luiz Fernando Santos, in 

charge of managing the Partnership 

Agreement. 

Adding to these remarks, Mr. Paulo 

César da Silva Costa, Sourcing and 

Strategic Alliances Manager, says 

that Petrobras’ main purpose with 

this agreement was to restructure 

its supply network, thereby enabling 

a fully strategic management. 

“Our intention was to move from 

acting solely as a buyer, and to 

identify opportunities for collaborative 

management with the market, 

thus optimizing our supply chain”, 

states Mr. Paulo César. 

“However, the main benefit deriving 

from this partnership is, no 

doubt, ensured supply. Petrobras 

works with high levels of operating 

costs, and any failure along 

the supply chain implies major 

losses. But today we can rely on 

this operational assurance”, adds 

E&P Supply Technician Délio 

Rodrigues. “Now we don’t have 

to go to the market every year 

to run the entire procurement 

process. And, therefore, we don’t 

have to stop our operations”, says 

Mr. Luiz Alberto Spagnolo, Coordinator 

of Partnership Agreements. 

Collaborative Planning 

For Petrobras’ E&P Corporative 

Procurement Manager, Mr. 

Demarco Jorge Epifanio, another 

A view of a pre-slinging 

operation in the VMB base of Macaé 

(State of Rio de Janeiro) 

major benefit from the Partnership 

Agreement is the possibility 

of the two companies doing 

collaborative planning. “From 

the moment I enter a long-term 

contract, I must get my forecast 

ready with long-term indications. 

This forces me to further improve 

my long-term strategic 

planning, while reducing the 

need for annual tenders and 

C 

From left to right: Laurent Pefferkorn, Luiz Fernando Santos, Geraldo 

Cesar Nadaes, Luiz Antonio Cardoso, Walter Isaac, Délio Rodrigues. 

From left to right: Luiz Fernando Santos, Luiz Antonio Cardoso, Walter 

Isaac (Macaé Base Coordinator). 


n 

tablishes a Partnership 

largest oil company 

Monteria 

edellin 

Manizales 

SANTA FE DE BOGOTA 

entura Ibagué 

Cali 

ayan Neiva Colombia 

Pasto 

Mitu 

or 

a 

arano 

Ca u 

Ma g dalen 

Caqueta 

Napo 

Ucayali 

Cucuta San 

Cristobal 

Bucaramanga 

Iquitos 

Guaviar 

Amazona 

Meta 

Apure 

Arauca 

Ciudad 

Bolivar 

Puerto 

Ayacucho 

San Fernando 

de Atabapo 

Orino c 

Japura 

Iça Fonte Boa 

Jurua 

Guayana 

bidding. This is also interesting 

for VMB, as it allows the company 

to better prepare itself to 

meet the demand”, says Demarco. 

In his turn, Mr. Marco Aurélio 

Ramos, E-Procurement Manager, 

adds that collaborative planning 

helps reducing operational risks. 

“Insofar as we can better predict 

our demand, we also have guaranteed 

supply from a partner 

who can easily get in line with 

our quality, order routines, and 

logistics requirements”, he says. 

According to Mr. Luiz Antônio 

Cardoso, Domestic Sales Manager 

of V & M do BRASIL’s Oil & 

Gas Division, as well as manager 

GEORGETOWN 

Guyana 

PARAMARIBOFrench Guiana 

CAYENNE 

Suriname 

Boa Vista 

Negro 

Branco 

Madeir 

Aripuana 

Essequib 

Manaus 

Ilha de 

Obidos 

Belém 

Marajo 

Porto de Moz 

Santarem 

Itaituba 

Tapajos 

Pucallpa 

Porto Velho 

Campina Grande 

Joao Pessoa 

te 

Rio Branco 

Guajara-Mirim 

Pojuca Juazeiro Caruaru 

Recife 

Palmas 

Maceio 

P e r u 

(Bahia) 

Riberalta 

allao 

Puerto 

Huancayo 

Feira de Aracaju 

LIMA 

Maldonado 

Cuzco 

Santana 

Trinidad 

Salvador 

Ica 

Bolivia Mato Grosso 

Vitoria da 

Cuiaba Belo Horizonte 

Arequipa 

BRASILIA Conquista Ilheus 

Lago 

Titicaca LA PAZ 

Cochabamba 

VMB Mill 

Goiânia 

Oruro 

Santa Cruz 

Arica Lago 

de la Sierra 

Corumba 

Uberlândia 

Poopo Potosi 

Caravelas 

Belo Horizonte 

Iquique 

Campo Grande 

Represa 

Vitoria 

Paraguay 

de Furnas 

Concepcion 

Campinas Nova Iguaçu 

Antafagasta 

San Salvador 

Rio de Janeiro 

Salta 

ASUNCION 

Sao Paulo 

Ciudad 

San Miguel 

Curitiba 

del Este 

de Tucuman Santiago 

Joinville 

Isla San Ambrosio 

del Estero Corientes 

Posadas 

Florianopolis 

La Rioja 

Caxias 

Santa Maria 

Coquimbo 

do Sul 

San Juan 

Cordoba Santa Fe 

Porto 

Rivera 

Parana Salto Pelotas Alegre 

Valparaiso Mendoza 

Paysandu 

Rosario 

LagoRio Grande 

Uruguay 

Mirim 

SANTIAGO 

Colonia Rocha 

M adre de 

Beni 

Venezuela 

Purus 

Di os 

B r 

Mamore 

Guapor 

Salad 

Pi 

lcomayo 

B 

ermejo 

Para 

J urue 

Paragua 

y 

A 

a z 

mazonas 

Uruguay 

Xingu 

Parana 

Macapa 

Maraba 

Araguai 

i l 

Ilha de Maraca 

Ilha Caviana de Fora 

Tocantin 

Tocantins 

Imperatriz 

Parnaiba 

Parnaiba 

Sao Luis 

of the Partnership Agreement, 

this contract is also very important 

for his company due to its 

strategic aspect. “In view of its long 

duration, it allows us to better 

plan our production and invest in 

technological development, seeking 

new products for our partners”, 

he says. “Today, we are 

responsible for the entire E&P 

stock of tubular all over Brazil”, 

tell us Mr. Luiz Antônio. 

Deep commitment of personnel 

is another factor pointed at as 

decisive for the success of this 

Partnership Agreement. “Surely, 

one of the main factors for 

achieving success in this first 

Sobral Fortaleza 

Teresina Quixada 

Natal 

Je quitinhonha 

Sao Franci s c 

phase is the person involved. The 

two companies mobilized key 

people to implement the partnership, 

which made things much 

easier. A project of this nature 

could not have been implemented 

in the short time we did, if 

there had not been strong interaction 

and harmony between 

people”, states Petrobras’ Contracts 

specialist Mr. Geraldo César 

Nadaes. 

Services 

Mossoró 

(Rio Grande do Norte) 

Japaratuba 

(Sergipe) 

São Mateus 

(Espírito Santo) 

Macaé 

(Rio de Janeiro) 

Under the Partnership Agreement, 

all services performed at Petrobras 

associated with pipes could event- 

 

V&M do Brasil 

Logistic Bases 

ually be under the responsibility 

of VMB. This includes transport, 

inspection, repairs, recycling and 

disposal. “The Partnership Agreement 

enables all pipe-related 

services to be assigned to V & M 

do BRASIL. Thus we, at Petrobras, 

can concentrate in our own core 

business, which is oil exploration 

and production”, says Mr. Délio. 

In addition to operational security 

and reduction of risks in the 

production process, Petrobras 

sees the continuity of pipe manufacturing 

in Brazil – and the 

consequent maintenance of existing 

jobs and creation of new ones 

– as a further major advantage of 

the partnership. “Through this 

contract, we secure jobs and 

investments in the country more 

easily than if we were going to 

the market on a spot basis. With 

contracts such as this one, we 

make it easier for companies based 

in Brazil to stay in the market”, 

stresses the Executive Manager 

for Materials of Petrobras, Mr. 

Armando Cavanha Filho. He 

concludes by saying that his 

company expects the Partnership 

Agreement to ensure “price, punctuality, 

quality, safety and social 

responsibility”. 

Subsequently, and in the same 

spirit, another Partnership Agreement 

was signed in June 2003, 

also with duration until 2007, to 

supply the demand for steel pipes 

and associated services of Refineries 

and Pipelines - Transpetro (downstream). 

5 


Customer satisfaction 

First Point Assessment 

innovation in customer satisfaction 

VMOGUK, like all other group members has an internal CSI looking at quality, delivery on time, complaints, concessions and HSE. 

However, in today’s environment, getting these aspects right is considered a pre-requisite for doing business. So, what was the 

innovation We simply decided to ask our customer’s directly! 

6 

In 1997, we launched into the 

First Point Assessment (FPAL) 

process. 

This approach gave us a unique 

opportunity to, formally and continuously, 

evaluate and improve our 

customer’s satisfaction. 

On a yearly basis, each key 

customer is directly evaluating 

our global performance based on 

15 criteria. Quality and delivery 

on time are only 2 of them. 

We also review our customers in 

terms of forecast accuracy, payment 

and communication. 

We then use this evaluation tool 

to agree on new targets, developed 

through joint action plans and 

traceable indicators. This also 

proved to be a huge source for 

developing joint added value. 

In 2003, we even decided to go 

one step further. We reinforced 

the customer’s visibility and 

commitment on the resulting 

action plans. We intend to make 

transparent to each customer 

the benchmark, for both our and 

their performance, compared to 

our full customer base. 

Finally, the innovation is that 

we are now running Continuous 

Improvement Programmes directly 

with more than 5 key customers. 

“Science (and improvement) can 

emerge when the approach of 

Annual FPAL 

Review Meeting 

the environment switches from 

perceived quality to measured 

quantity” (Leonard de Vinci). 

Customer’s satisfaction does not 

escape from this rule. 

In a B to B market, with limited 

number of customers, the best 

way to get access to this measurement 

is still the direct questioning 

of clients. 

FPAL Promotes 

Continuous Improvement 

Year on Year 

The importance of continuously 

improving our FPAL rating is 

filtered down through the 

business and is referenced in the 

setting of objectives for individuals 

in their performance reviews. 

In addition employees are 

continually encouraged to seek 

new way to develop and strengthen 

our customer relationships. 

Year on year the results are 

recorded to highlight where we 

may be excelling or in need of 

further review. For example, prior 

INNOVATION CUSTOMER 

VMOG UK committed to FPAL; committed to Customer Satisfaction 

Actions identified 

and documented 

Actions monitored 

until satisfactorily 

closed-out 

to the Bellshill project consolidating 

our Imperial and Clydesdale 

Mills onto one site we had received 

a lower overall rating on 

‘facilities’ in 2002. When investigated, 

our customers made 

reference to the positive upgrade 

to our facilities due for completion 

in 2003, ensuring our long 

term sustainability in the UK. 

We therefore expect our ‘facilities’ 

rating to improve in 2003. 

First Point Assessment is implemented 

by VMOG UK on 

two levels. Firstly, we follow the 

Review Procedure set by FPAL 

through performance rating at an 

annual meeting with our Customers. 

Secondly, we independently 

revisit and focus attention 

on the actions and initiatives 

discussed at the annual review 

meeting, ensuring that these 

points remain live until successfully 

closed out. It is very easy to 

set targets but the proof of a 

sound working relationship is 

Promotes a continuous cycle of improvement 

SATISFACTION 

AIM: 

To improve 

upon previous 

years Scores 

Target 85% 

Customer 

performance 

review 

through the commitment to these 

actions, ensuring the ultimate 

attainment of the goals. The 

newly developed ‘Actions Update’ 

takes the use of FPAL one step 

further, ensuring that we are 

constantly seeking new ways to 

minimise costs, improve efficiency, 

and focus on health, safety 

and environmental improvements 

(see process diagram below). 

VMOG UK’s commitment to 

FPAL is demonstrated in the 

Performance Feedback Benchmark. 

Our company represents 

69% of all the feedback from 6 

competitors selected. By definition 

we create the average and 

the benchmark that we now have 

to beat is ourselves. No bad thing 

for us as our target is not just to 

beat our competitors but to achieve 

an excellent rating in each of the 

categories! 

Clearly as a major supplier to the 

North Sea Oil industry a good 

reference in FPAL is extremely 

important but it must be seen as 

a means to an end not an end in 

itself and there is always room 

for improvement. 


Environmental Protection 

CLEANWELL ® : 

our solution to sustainable 

development 

Process of VAM ® TOP CLEANWELL ® 

A VAM ® TOP CLEANWELL ® field end ready to use 

7 

Since 1999, VALLOUREC MANNESMANN OIL & GAS (VMOG) R&D 

has been working with its partner Sumitomo to develop a dope 

free solution constituting a step change in philosophy regarding 

tubular management. This is one of the VAM Family’s answers 

to the increasing demand for a responsible attitude from all 

aspects of the business towards the environment. This concern 

affects all industries, Oil and Gas in particular. 

A 

large number of alternate 

products and technologies 

were screened, 

leading to the selection and 

validation of the “best-in-class” 

solution. Consideration was given, 

not only to the operational requirement 

for repeated make-andbreaks, 

but also “environmental 

friendliness”, corrosion resistance, 

ease of inspection, friction behaviour 

and response to adverse environmental 

conditions. This solution, 

offered initially as an option 

for VAM ® TOP connections, is 

patented and registered under the 

CLEANWELL ® trademark. 

CLEANWELL ® is applied as a 

surface preparation finish within 

threading plants. It provides both 

anti-corrosion capability (storage) 

and lubrication for rig make-up, 

so that a CLEANWELL ® VAM ® 

connection is “rig ready” in the 

plant: CLEANWELL ® connections 

can be stored and used 

without any extra operation: just 

remove the protector, inspect 

visually and proceed with makeup. 

Trial orders were successfully 

run by STATOIL and MAERSK. 

Both customers are sufficiently 

satisfied to express their wish 

to adopt CLEANWELL ® as 

stand-ard, in order to benefit 

from safer working conditions, 

protection of the environment, 

easier tubular management from 

the mill to the well and time saved 

during rig operations. 

At the beginning of the project 

VMOG France was designated as 

the pilot plant for the CLEAN- 

WELL ® option. Mid-2002, the 

industrialization team highlighted 

the need to adapt the product 

to conform to new EU environmental 

regulations. Close co-operation 

between the lubricant 

manufacturer, VMOG France and 

VMOG R&D resulted in an updated 

CLEANWELL ® version being 

available early in 2003. This provides 

safer, solvent free operating 

conditions within the threading 

plant. The industrialization of the 

product required a modification to 

the layout of the threading lines. 

This had to be done quickly, taking 

advantage of the holiday period 

A VAM ® TOP CLEANWELL ® 

being run 

during July and August 2003. The 

set-up of automated devices (pipe 

conveyors, pre-heating of connection 

surface, spraying of the 

CLEANWELL ® ) was completed 

by the end of October 2003. Both 

the coupling shop and the threading 

lines were ready for CLEAN- 

WELL ® production in December 

2003. 

In the future, CLEANWELL ® 

production will be extended to 

other companies of the OCTG 

Division. Indeed BP already ran 

successfully this year about 100 

VAM ® TOP CLEANWELL ® 

connections, which were produced 

in a semi industrial way by 

VAM PTS. VMOG-UK also 

expect to supply CLEANWELL ® 

for a trial order before the end of 

2004. 


VAM ET 

Ready to serve 

V & M TUBES has been committed for over five years to the development 

of expandable tubular products liable to meet the oil producers’ 

new requirements for the productivity of their wells. 

Called VAM ET, the range of joints now available is able to meet 

the expectations of an emerging but high growth potential market 

based on the so-called “Solid Expandable Tubular” (SET) 

technology. Philippe Deletombe, “Expandable” product manager 

at the OCTG Division of V & M TUBES, reviews this strategic choice 

and the market’s prospects. 

8 

“ 

The principle of expansion 

is to expand by 

10 to 25% the diameter 

of a column of tubes and 

their connections after it has been 

inserted in an oil well. There are 

two different types of use: ‘Expandable 

Sand Screen’ (ESS) and ‘Solid 

Expandable Tubular’ (SET). ESS 

is in the strategic area of fluid 

Figure n°1 

extraction (Figure 1) and is gradually 

replacing the prior ‘sand 

screen’ technique which limited 

production capacity optimization. 

It is possible, after expansion, to 

reduce to a minimum the annular 

void between the perforated tube 

and the well bore, and so significantly 

boost the oil extraction rate. 

Simpler, with a larger cross-section 

The new manufacturing 

line for SET goods at Clydesdale 

plant (UK) 

and easy to repair, this new generation 

of expandable tubular products 

is already contributing to the 

record yields expected by oil companies 

from their more recent 

wells. 

Towards a mono-diameter… 

The other use, SET, does not 

directly concern the crude oil or 

gas reservoir zone, but all other 

parts of the well structure. It is in 

this area that V & M TUBES has 

become particularly involved for 

over five years now. While monodiameter, 

that is, a column of 

expandable tubes of the same diameter 

virtually throughout the 

entire well structure, is not yet a 

reality, it has to be recognized that 

the multiplication in expandable 

applications has now made it 

totally feasible. V & M TUBES is 

already in a position to supply 

expandable products designed to 

repair damaged columns with a 

minimum loss of production diameter. 

In September 2002, a major 

order for NAM was installed in the 

Groningen field in the Netherlands. 

The contract was to replace 

a conventional column of 5 1 /2” diameter 

tubes in 13 Cr with a new 

13 Cr expandable column of 1,800 

meters long, that would line an 

existing 7 5 /8” casing (see V & M 


the SET market 

REPORT OCTG Division No 3). 

The operation was completely successful 

and the well’s production 

was boosted by 60%! Around ten 

applications of this type are scheduled 

for this year. It is perfectly 

feasible to treat other components 

along the well structure (Figure 1) 

using expandable tubes. 

A changing market 

Number 

of feet 

70 000 

60 000 

50 000 

40 000 

30 000 

20 000 

10 000 

1 

0 

Figure n°2 

1 st half 2 nd half 

2000 

The market is changing: well repair 

and maintenance ("cased-hole 

liners"), which up until now 

have been the main outlets for 

SET, are already beginning to 

fall off compared with the number 

of orders placed directly for “openhole 

liner” applications. As the 

latter are demanding in terms 

of the technical performance of 

the expandable tubes and connections 

required, V & M TUBES 

finds itself in a privileged position 

on the market given the 

major investment it has made 

in research, development and 

production facilities (see spotlight 

page 12). The strategic decision 

to become involved very 

early in SET is now beginning 

to pay off insofar as the range 

of expandable products (grades, 

tubes and connections) manufactured 

by V & M TUBES largely 

already meets the current 

market needs, and is an essential 

step towards the use of a monodiameter. 

Prime partners 

This significant lead held by V & M 

TUBES is largely attributable to 

Shell, one of the leading drivers in 

SET MARKET EVOLUTION: 2000 - 2003 

2 


2001 

3 


2002 

the development of expandable 

technology. Shell has been working 

on this technology for over a 

decade in order to be in a position 

to install as quickly as possible its 

first fully mono-diameter well 

structures. Working towards this 

goal since 1999 under an initial 

agreement, V & M TUBES has 

cooperated with Shell’s expandable 

project teams (see box) and acquired 

a lead position in premium 

"cased-hole liner" applications. 

Shell has also initiated major 

joint ventures, including that 

with Haliburton through Enventure 

Global Technology (EGT) 

which currently has a virtual monopoly 

over the implementation of 

SET. Further, it recently granted 

an operation license to oil services 

company Weatherford, a leader in 

the area of ESS, which very soon 

4 5 


2003 

will also be operational in SET 

technology. It seems fairly probable, 

through these several illustrations 

and the more or less evident interest 

shown by the other companies, 

that this market is set to become 

an economic reality (Figure 2), 

which undoubtedly points to the 

prospect of promising outlets for 

V & M TUBES." 

1999: 

1 

Beginning of V&M 

involvement in 

SET research – First 

confidentiality agreement 

with SHELL. 

2001: 

2 

SHELL and V&M joins 

their R&D resources 

for SET by the signature of 

a JDA (Joint Development 

Agreement). 

2002: 

3 

NAM and V&M 

successfully complete the 

first 13Cr gas tight SET 

job in the Groningen Field. 

More than 6000 feet of 6” 

pipes and connections are 

expanded. 

2003: 

4 

V&M achieve the 

installation of a completely 

new manufacturing line 

for SET goods at 

Clydesdale plant (UK). 

2003: 

5 

V&M deliver the SET 

7” 5 /8 13Cr pipes and 

connections for SHELL 

Sarrawak in Malaysia. 

9 


HPHT Development 

Casing & tubing develop 

For some years now the major oil companies operating in the 

North Sea have seen advantages in producing high temperature, 

high pressure condensates from the Central Graben. For example 

Shell’s Shearwater Field, discovered in 1988, lies in the Central 

North Sea some 225 km (138 miles) east of Aberdeen. The gas 

condensate reservoir depth is 4,545 metres (15,000 ft) and is 

characterised by its extremely high pressure and high temperature 

- 1,000 bar and approximately 180 degrees C. 

10 

The geological structures 

date back to the Jurassic 

Age. The field was 

brought into production in 2000 

with the use of cutting edge technologies. 

One day's production 

from Shearwater would fuel a 

family car for 1690 years or heat 

the water for 4.5 million showers. 

Total’s (formerly Elf) Elgin and 

Franklin fields which were discovered 

in 1991/1986 and brought 

on-line in 2001 are in the same 

area and have pressures of 1100 

bars at temperatures up to 200 

degrees C at depths in excess of 

5100 metres. 

The exploration and production 

wells drilled in this area have presented 

new technical challenges. 

Vallourec Mannesmann Tubes 

have worked closely with their customers 

to develop solutions to 

many of these. The solutions have 

been evolutionary rather than step 

changes and because of this and 

because V&M have been able to 

use the recourses of HRT, RDPE, 

RDPC and VMOG UK in parallel 

the solutions have kept pace 

with customers needs. HRT (Hot 

Rolled Tubes) and VMOG UK are 

manufacturing divisions for the 

basic casing and finishing operations. 

RDPE and RDPC are divisions 

of R&D working on OCTG 

materials and premium connections. 

High Pressure, High Temperature 

(HPHT) wells by definition needs 

casing to contain high-pressure 

characteristics. This can only be 

achieved by varying two factors: 

• Pipe wall thickness 

• Steel strength 

Pipe is traditionally made to standard 

outside diameters and thicker 

pipes have reduced internal 

dimensions, which restrict the size 

of the hole that eventually reaches 

the hydrocarbon reservoir and 

hence the volume of condensate 

that can be brought to the surface. 

VMOG UK has manufactured 

casing with standard internal diameters, 

resulting in non-standard 

outside dimensions such as 9 7 /8”, 

10” 10 5 /8”, 13 5 /8” and 14”. Where 

pipe is used as intermediate casing 

and drilling continues through it 

the pipe can be worn by contact 

with the rotating drill pipe. The 

loss of wall thickness reduces 

safety factors and could demand a 

de-rating of the well. 

Standard specifications for new 

pipe allow the minimum wall 

thickness to be 87.5% of nominal. 

By careful control at the early 

stages of pipe making this situation 

can be improved to 90% of 

nominal wall thickness, but consistent 

improvement beyond this is 

difficult to guarantee for a full 

production batch. 

VMOG UK has ultrasonic ins- 

The following quotation is taken from Total’s “Fact File” 

FINDING SOLUTIONS 

Resolving drilling challenges 

Drilling Elgin/Franklin’s wells called 

for solutions to technical challenges 

that had never previously been tackled 

or resolved. To cope with the 

reservoir’s high pressure/high 

temperature conditions, the drilling 

equipment had to be far superior to 

materials used in a standard well. 

The casing is more than three times 

the normal thickness, while the 

drilling mud has been specially 

designed to work efficiently both at 

the surface and at the extreme 

pressure/temperatures encountered 

downhole... 


ments for HPHT applications 

pection equipment, which measures 

wall thickness over the entire 

surface of each pipe and records 

the minimum value against a 

unique pipe identity. 

All pipe in an order can therefore 

be guaranteed to have a minimum 

wall thickness better than 90% of 

nominal and by segregation pipe 

can be classified with 92.5%, 95% 

97.5% etc… 

The drilling engineer can now 

select thicker pipes to be placed 

in areas where the drill pipe wear 

is predicted to be worse. 

Increasing steel strength to improve 

performances of casing has 

limitations because invariably in 

Central Graben there are significant 

quantities of hydrogen sulphide 

(H2S). Hydrogen sulphide 

can cause stress corrosion cracking 

and high strength steels are more 

prone to this type of failure than 

lower strength steels. Standard 

steel grades for H2S service are 

limited to 95-ksi minimum yield 

strength. VMOG UK has selected 

steel analyses and heat treatment 

parameters to give good resistance 

to H2S at the 110-ksi minimum 

yield level. Industry experts have 

identified two different laboratory 

test methods to assess different 

aspects of a material’s suitability in 

H 2 S environments. A material 

performing well in one test may 

not do so well in the other. The 

data bank of results obtained from 

both tests allow VMOG to select 

the most effective solution for each 

application. 

This same data is currently helping 

RDPE in the generation of 

125-ksi sour service grades. Although 

materials are classified by 

minimum yield strength the maximum 

allowable yield is critical 

strength level for sour service testing. 

As operating temperatures 

increase, so the effect of H 2 S 

decreases. VMOG have developed 

proprietary grades with restricted 

yield ranges to give high minimum 

yields for mechanical design criteria 

and relatively low maximum 

yields for corrosion resistance at 

elevated temperatures. 

Each length of casing needs to be 

joined to the next by a threaded 

connection with performances as 

close as possible to the casing itself. 

New non-standard casing sizes 

need new connection designs. 

Fortunately applying the wellestablished 

design principals from 

existing product ranges can 

satisfy many applications. A good 

example of this is 10” VAM TOP 

which could be designed in just a 

few days, but took over 6 months 

of intensive laboratory testing to 

the full ISO 13679 test procedure 

to demonstrate firstly its suitability 

for Shell’s project and subsequently 

its ability to match the pipe 

body performance ratings. 

Some types of wellheads do not 

allow the operator to bleed off 

pressure that may develop in the 

annulus between casing sections. 

Connections in this area need to 

provide reliable gas tight seals 

throughout the lifetime of the well. 

When in production the operating 

temperatures of the HPHT wells 

cause the casing to expand. If this 

is resisted a high compressive load 

can develop. Traditionally premium 

connections can be weak 

under the combined effect of 

external pressure and compression. 

VAM HP has been designed with 

two independent seals: 

• One for internal pressure 

• One for external pressure 

VAM HP can as a result cope with 

the service loads. As with all VAM 

connections, severe laboratory testing 

is used to validate the design and 

in this case the tests included external 

pressure at elevated temperatures 

with simulated gas conditions 

as opposed to a liquid medium. 

VAM ® HP coupling ready for surface 

These developments in the areas 

of : 

• Pipe materials 

- for sour service, 

• Manufacturing processes to give 

- consistent H2S resistance 

- non-standard sizes 

- pipe classified by wall 

thickness 

• Connection design 

- new generation designs such as 

VAM TOP and VAM HP 

- tested and qualified to appropriate 

procedures 

are good examples of how an 

integrated manufacture like V&M 

Tubes, working closely with customers 

can meet new technical 

challenges. 

11 


Innovation Drill Plant 

Striving for continuous 

12 

Manufacturing drill pipes for the oil industry started up in 

Aulnoye-Aymeries in 1976, with the creation of the Flash 

Welding unit. This activity grew as the result of a series of 

acquisitions, eventually becoming today’s VMOG France Drill 

Plant. In 1997 a number of changes were introduced, laying 

the foundations for a cultural change within the unit. From traditional 

management methods we changed over to participative 

management methods using continuous improvement tools, 

TPM*, CIGs**, P cards***, and so on. The Continuous 

Improvement Groups constitute an outstanding training school. 

Today we have 9 certified groups – 3 of them Gold – with an 

average workforce of 120 and operations varying between 5 

shifts and 20 shifts per week. 

Gérard Leveau: 

What prompted the introduction 

of these continuous improvement 

strategies 

Bruno Rivart: 

We became aware that the 

conditions we were working in 

were not helping us to make 

progress. Factors here included 

high stock levels, dirty and 

obsolete machinery and a high 

accident rate. 

G. L.: 

Why TPM 

B. R.: 

This strategy includes initiatives 

relating to most of our weak 

points: cleanliness, tidiness, safety, 

quality, stock management, productivity, 

etc ... 

Another significant benefit is 

that all workforce, including 

temporary workers are involved 

in the strategy. 

G. L.: 

What are the key issues for making 

this strategy work 

B. R.: 

First of all, a high level of 

determination and involvement 

on the part of the management 

team. Then assistance in starting 

up the project from an external 

improvement 

consultant who combines high 

standards with pragmatism and a 

knowledge of the difficulties on 

the ground. It’s also important to 

invest in the project itself, i.e. to 

put some time into it at the start 

and to stop the production if 

necessary. 

Success depends on workforce involvement, 

recognition of results and 

steady, goal-focused management. 

Targets must be concrete, attainable 

and progressive as far as 

possible, so that the group sees 

the impact of their efforts on 

their results at regular intervals. 

Finally it’s absolutely vital to 

monitor the groups’ progress by 

means of monthly steering committees 

made up of management 

personnel. These meetings must 

serve as an example, so that the 

group coordinators and participants 

can learn from them for 

their own group meetings. The 

key is to combine rigor and 

unwavering standards in the 

methods applied with encouragement 

for the groups’ achievements 

and future goals. 

G. L.: 

What impact has TPM had on 

the life of the plant 

B. R.: 

TPM has really unlocked a new 

way of thinking, paving the way 

for the introduction and success 

of other progress strategies. The 

main strategies here would 

include: the "P" cards for safety 

which give all employees a clear 

picture of safety problems and 

issues, the monthly safety hour 

during which we talk subjects of 

importance to the whole unit 

using a video, the "ALLIANCE" 

project which divides the unit 

into 5 sectors to monitor 6 goals 

from the general management 

goals (safety, costs, delivery, 

quality, productivity, 5S). These 

sectors are managed by GTMs 

(Group Technical Managers) who 

use TPM and the Pareto method, 

as tools 

G. L.: 

I hope that this interview will have 

convinced you of the benefits of 

the strategies we have introduced 

– for both the business unit and 

the staff. Nothing comes of 

nothing: the results reflect our 

ambitions and our commitment. 

*TPM = Total Productivity Maintenance 

**CIG = Continuous Improvement Group 

***P Cards = Problem cards 

Gérard Leveau and Bruno Rivart in front of the “total qualité” stand 

Starting 5S operation 


Spotlights 

VALLOUREC MANNESMANN OIL & GAZ UK (VMOG UK) 

V&M TUBES CORP. (USA) 

BP'S HOLSTEIN RISERS 

IN THE GULF OF MEXICO 

VALLOUREC & MANNESMANN TUBES 

is working with BP to supply their Holstein 

riser system in the Gulf of Mexico. The 

project is in 4300' WD and will be comprised 

of 15 risers of approximately 5000' each. 

V & M TUBES will supply 11 7 /8" 550w 

67.80# T95 with VAM TOP FE riser 

connection along with multiple accessories 

including crossovers, keel joints and stress 

joints for each riser. 

BP is performing fatigue testing of the 

connection using samples provided by 

V & M TUBES - Rath, Germany plant. 

PDW1 is a backup connection for 

VAM TOP FE. The Reisholz works of 

V&M Tubes - Germany will provide these 

critical parts for portions of each riser section. 

V & M TUBES has already provided the 

riser system to BP's Horn Mountain project 

in the GOM and is working with the client on 

other upcoming riser system projects in the 

deepwaters off the USA. 

"VMOG UK booked its first order of VAM SW, threaded 

on VM110SS for complex export project" 

"After the specific investment made in Bellshill for the 

industrialisation of the VAM ET, VMOG UK just successfully 

threaded and delivered the first VAM ET order. Two more 

orders have already been booked for export, much more 

enquiries are under review. VMOG UK is in charge of 

manufacturing the VAM ET and sub-contracting all the 

operation (coating, elastomers,...) allowing to deliver a final 

product, ready for expension, to the end user" 

"VMOGUK has delivered 2 major orders of VAM TOP FE 

for SHELL in Mauritania and Egypt, demonstrating its 

capability to deliver high tec material in short lead times" 

VMOGUK: FIRST POINT ASSESSMENT 

(FPAL) INNOVATION IN CUSTOMER 

SATISFACTION 

• VMOG UK has an objective to complete 5 face to face 

performance reviews with customers using the FPAL system. 

• VMOG UK has a target to achieve 85% performance 

feedback rating for 2003, having achieved 80% in 2002. 

• VMOG UK goes one step further using a spin off from the 

official FPAL process to focus Customers on improvement 

actions to drill down to what they really expect from us. 

• VMOG UK will publish an article in the FPAL official news 

letter "Pointers magazine" which will focus on the initiative 

identified in 3 above. This is circulated to 1200 subscribers in 

the UK. 

13 

VALLOUREC MANNESMANN OIL & GAS UK (VMOG UK) 

A NEW CHALLENGE! 

V & M TUBES has been involved, since the end 

of 1999, in the development of VAM connections 

suit-able for the future SET (Solid Expandable 

Tubular) market. In 2001 this interest was furthered by 

signing a joint development agreement with SHELL, 

the leader for this emerging technology. 

After one year VALLOUREC MANNESMANN 

OIL & GAS (VMOG) was able to deliver the first order 

for SET to NAM. A job that achieved a number of world 

“firsts” and records. At the end of 2002 the group 

decided to invest in a new threading line because of 

tight tolerances and specific treatments required for the 

gas tight expand-able connections. The pilot plant 

chosen for the development was VMOG UK’s 

Clydesdale Works in Scotland. The big challenge for the 

project teams was to specify, order, install and 

commission the line within 9 months. The capital 

expenditure of almost 3 750,000 was mainly dedicated 

to the purchase of a Mori Seiki CNC lathe. VMOG is 

now ready to face the coming “expandable” challenge: 

we have receiv-ed two orders from two Shell affiliates, 

for a total of 17,500 feet of 13%Cr expandable casing. 


14 

Spotlights 

V&M STAR (VMS) - USA 

V&M STAR ON-LINE 

V&M STAR On-Line, a web-based 

application was launched to our 

distributors in May 2003. Core distributors from each product 

line; OCTG, Line Pipe, Coupling Stock and Standard Pipe have been given 

access to the application. VMS currently has 12 distributors actively using 

the application. The On-Line system provides order status, shipment and 

invoice information and mill test reports to both distributors and internal 

VMS users. The application allows for quick retrieval of important order 

information, and reduces phone calls and paperwork for all parties. Phase 2 

of On-Line will be ready to launch to customers by 1/1/04. Some of the 

enhancements will include batch printing of Mill Test Reports, visibility for 

distributors to see their customer owned inventory in our yard, accessibility 

to pipe tallies, and a bulletin board for messages and attachments. 

VAM PTS 

ISO 9001:2002 CERTIFICATION 

On March 28, VAM PTS received word from our registrar 

that the company had received ISO 9001:2000 certification, completing a 10- 

month company-wide effort. 

VAM PTS was originally certified to the 1994 edition of ISO 9002 in 1996. As Guy 

Feland, quality assurance manager, explains, “The old standard was a very strict, 

regimented system that boiled down to “say what you do, and do what you say.” 

“ISO 9001:2000 places emphasis upon flexibility in running the business, with 

key measurable indicators used to continuously monitor and improve 

performance. The design of our new Quality Management system allows for 

much more flexible operation, while still stressing control in all processes.” 

VAM PTS is now ahead of the December deadline to be certified in the newest 

standard - an assurance to customers that quality is essential to company's 

values and integral to our operations. Summarizes Guy, “It is not an easy task to 

fulfill all the requirements to achieve ISO certification. The dedication shows 

our commitment to providing excellent products and services as well as 

excellent customer service.” 

For more about the ISO family of standards, go to: www.iso.ch 

PRINVER (MEXICO) 

NEW PLAYER IN MEXICAN MARKET 

In year 2003 Pemex Exploration and Production (PEP) 

have exceptional level of activity. This one is in line with Prinver’s 

activity. VAM connections are well positioned in the market and 

customers are satisfied with quality, delivery time and services from us. 

This year also is welcoming new Player as customer for Prinver. CFE 

(national Power Generation company). Prinver got an order to supply 9 

strings 9 5 /8” with New VAM connections to be used as tubing in 

Geothermal Wells. In this contract Field Services were included too. 

V&M DO BRASIL (VMB) 

SHELL AND VMB CONQUER 

A NEW RECORD IN ULTRA 

DEEP WATERS 

Shell broke a new record in Brazil, by 

drilling Shell deepest well ever, at a record 

2900 meters water depth in the Campos 

Basin. 

VMB was fully part of this achievement, 

by providing the 2900 meters casing riser, 

composed of 13 3/8 P110 VAM TOP-FE. 

In addition to the tubular and accessories, 

VMB performed a full range of services, 

such as special frame packing, special marking 

and tallying, onshore inspection before and 

after running, and VAM Field Service. 

VMB CONQUERS NEW 

QUALIFICATIONS FROM 

INTERNATIONAL 

CUSTOMERS 

After being qualified by BP on its P110 grade, 

VMB will supply tubing for its Wyoming 

drilling programme in 2003 and 2004. 

In August, VMB successfully passed all 

qualifications tests by PDVSA, the 

Venezuelan State Company, for the 3%Cr, 

13%Cr and High Collapse Grades. 

QUALITY IS VMB NUMBER 

ONE PRIORITY 

In the 1st half of 2003, VMB was certified 

ISO 14001, an acknowledgement of its 

constant efforts to preserve the environment. 

With this certification, VMB proudly 

obtained another of the principal quality 

certificates, after being certified ISO 

9001/2000 and OHSAS 18001. 

VMB EXTENDS ITS RANGE 

OF PREMIUM CONNECTIONS 

“MADE IN BRAZIL” 

After developing the production of the 

full range of VAM connection in Brazil, 

VMB has sent its team of VAM Field Service 

engineers to assist the running of premium 

“made in Brazil”. 

An order of 13 3/8 P110 SLIJ-II was run 

in Bolivia, and another order of 13 3 /8 DINO 

VAM was run and supervised in Brazil, 

both successfully. 


PRODUCT LINE 

NEW STANDARD 

Designed for high performance in compression under combined loads. 

It can be used in all applications. 

VAM TOP design, to offer High Compression under combined loads, 

equivalent to the pipe body (100%) 

VAM TOP design, for drilling liners rotating at High Torque 

The dopefree tubular connection system for VAM TOP 

LARGE CASING 

A semi premium connection for large casings, with improved running 

performances 

(IS) 

A large diameter connection with improved running performances, 

for conductor pipes, surface and intermediate casings 

P-DW 

WO 

INTEGRAL JOINTS 

A Flush Joint Liner connection with maximum clearance and excellent 

gas tightness 

An integral, formed box connection, combining semi-flush slim line OD 

with high tensile strength and sealability under severe combined loads 

A flush heavy wall connection for extreme external pressures 

as found in squeezing clay and salt domes 

HEAVY WEIGHT 

A connection for Heavy Wall casing for high pressure wells 

DRILL PIPE WITH TOOL JOINT 

A high torque double shoulder tool joint for drill pipe totally interchangeable 

with the conventional NC or FH API tool joint 

An extreme torque double shoulder tool joint for drill pipe, suitable for drilling operations 

in extreme conditions such as high bending and/or long horizontal lengths 

RISER 

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

Fatigue Enhanced version of VAM TOP casing for inner riser 

and drilling riser 

Production riser for Deep Water applications where high fatigue resistance 

and external sealing are required 

Work Over riser for well maintenance and early production 

in deep water applications 

CLEANWELL ® is a registered trademark of Vallourec Mannesmann Oil & Gas France 

www.vamservices.com

. V&M R OCTG n. 4 |OK| - VAM Services

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