OCTG N°8 A.qxd (Page 25) - VAM Services

THE VALLOUREC & MANNESMANN TUBES MAGAZINE
OIL & GAS DIVISION
February 2006 - No.8
Our worldwide
sales network
to better
serve the
customer
www.vamservices.com

EDITORIAL
Oil and Gas Division sales organization: a commercial melting pot!
As you will discover reading through the
articles of this V & M REPORT dedicated
to our sales organization: selling OCTG
and drilling products all over the world
is a rich and exciting job. It is also
tremendously diversified, selling pipe to
a National Company in the Caspian Sea
area is somewhat different from selling
to a major oil gas company headquartered in Houston, Texas… and
it is not only a question of language… The international dimension
of the Oil & Gas division is truly reflected in the multicultural
composition of our sales organisation as testified by the interviews
in this report.
But in all cases, representing V & M TUBES, the products and the
company values, is the first mission of our sales people standing in
front of our customers or answering to the phone. In our business,
whatever the country we operate in, building long term relationships
with our customers is our key objective. Trust is built over time
supported by the quality of the product and service but also by this
special human relation that develops between the seller and the
customers representatives.
Another specificity of our business is the variety and the complexity
of the organizations of our customers, not only do we have to
deal with the purchasing department representatives but we have
also to know the technical teams, the drilling and production engineers,
the service companies who will run the product on the rig,
etc… Listening to the needs of all these people is also a key attribute
of a good seller. At the end of the day, each of them will have
to be satisfied if we want to get a satisfied customer.
Pierre Padovani
Director Marketing & Sales, Oil & Gas Division
CONTENT
VAM ® is a registered Trademark of Vallourec Mannesmann Oil & Gas France
SALES ORGANIZATION
P.04 - “Contract Manager,
the point of focus to
our contract customers”
P.06 - “Sales administrators
interface with everyone”
P.06 - “Good products, smart services
and knowledge management...”
P.08 - “Self-motivation, organization,
the human touch... and character”
P.08 - Selling pipes to Central Asia:
Pioneering new markets...
P.11 - Middle East Market :
“Enormous!”
P.12 - Sale to Pemex…
P.14 - V & M STAR: Nothing is possible
without the distributors
P.16 - V & M do BRASIL:
The conquest of export areas
P.18 - Marketing & Development
Manager: “A dream job”
PRODUCT
P.18 - VAM ® TOP: together,
we’ve set the standard!
VAM ®
Our worldwide
sales network
to better serve the
customer
SERVICES
OpenPortal Service:
P.20 - VAM ® documentation on line:
on your marks, get set, download!
P.20 - “More than 3,600 documents
are already on line”
P.21 - “Real-time access
to the latest updates”
P.21 - “24/7 access”
P.22 - SPOTLIGHTS
www.vamservices.com
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: VMOGF, VMOGG, V & M Deutschland, VMOGUK, V & M STAR, VAM PTS, VMB, Thierry Truck, or as mentioned
otherwise - All rights reserved.

SALES ORGANIZATION
Our worldwide
sales & services
network
Sales offices
France, Germany, UK, Canada, USA,
Mexico, Brazil, Dubai, Singapore,
Turkmenistan, Uzbekistan, China.
VAM Field Service International
UK, Canada, USA, Mexico, Brazil,
Angola, Dubai, Singapore.
VAM Services
A VAM ® licensee network with more
than 120 accessories and repair workshops
in over 40 countries located
close to our customers operations
worldwide.
Emma Henderson, Contract Manager,
“Contract Manager,
focus to our contract
Caroline MacDonald, Marketing Manager, interviews Emma
Henderson who is one of the VMOG UK Contract Managers,
based in Aberdeen, Scotland.
Caroline MacDonald: How long have you
been with VMOG UK and what are your
core responsibilities
Emma Henderson: My career within
VMOG UK commenced in April 2002
in my first position here as Material and
Services Controller. At that point I was
responsible for all sub-contracting
carried out within the business. Previous
to that, I was working in New
York, following graduating with a
Business Studies degree. My Contract
Manager duties mean that I am responsible
for three contract customers
operating in the UK, Norway and the
Philippe Emery, Deputy Managing Director of OCTG Europe:
“Providing tubular
goods made in Europe”
OCTG Europe designs and
manufactures in its subsidiaries
across Europe a comprehensive
range of tubular products to meet
the oil and gas industry needs:
• casing, tubing and accessories with standard API-Buttress thread
• casing, tubing and accessories with Premium Joints from the
VAM ® joint range
• risers for deep offshore
It also provides tube threading and associated services
through its subsidiaries in Indonesia, Vietnam and
Singapore.
OCTG Europe offers to the market tubular goods from
our V & M TUBES source (steel manufacturing and pipe
rolling in France and Germany). Heat treatment, threading
and finishing is offered from the different plants of
OCTG Europe in France, Scotland and Germany or
through our affiliate company PT Citra Tubindo.
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VMOG UK
the point of
customers”
Netherlands and for the progress of
all expandable orders. In addition to
this, I am also the VMOG UK QA
representative in Aberdeen and a CIT
team leader.
Caroline MacDonald: What would be the
impact if the role of Contract Manager
did not exist in Aberdeen
Emma Henderson: The primary role
of a Contract Manager is to be the point
of focus for all the day-to-day operations
and requirements of our contract
customers. Without this position existing,
we would not be able to develop
relationships with the corresponding
points of contact within the customers’
organisations. This would mean we
would receive no information with
regards to drilling schedules and future
requirements which in turn would mean
we would not be able to plan, manufacture
or forecast with any degree of accuracy
whatsoever. The absence of the
Contract Manager role would also prevent
us from identifying opportunities
and developing contracts, both of which
could lead to further sales. We would
also not be in a position to offer the customer
specialist knowledge of their particular
products or services.
Caroline MacDonald: How would you describe
your relationships with your customers
Emma Henderson: I have been in my
current position for two years now and,
over that time, have built up very close
relationships with my opposite numbers
located within our customers’ organisations.
These relationships are developed
through daily phone conversations
and regular meetings, aided by the close
geographical proximity to our customers.
These established relationships
certainly render my job easier.
Caroline MacDonald: How would you describe
your relationships with your colleagues
Emma Henderson: Each Contract
Manager is supported by one of our sales
team in a Contract Sponsor role. The
Contract Sponsor is responsible for overseeing
the efficient operation of the contract.
I provide feedback to my Contract
Sponsor regarding future requirements
to assist forecasting. The Contract
Sponsor may sometimes accompany
myself to meetings if there are specific
issues to be discussed. In general, though,
much of the dialogue between a Contract
Manager and Contract Sponsor in
VMOG UK is informal, assisted by the
open plan office and the flat organisational
structure. Each Contract Manager
also has a back-to-back. This is another
member of the contracts team who is
available to cover all day-to-day operations
when the Contract Manager is
away. Whenever I am out of the office, I
and my customers know that there is
knowledgeable cover for all their requirements.
Caroline MacDonald: What is your biggest
everyday concern
Emma Henderson: My biggest concern
in this job is the accuracy and completeness
of the information I receive. In
today’s current market of extremely high
demand, it is paramount to ensure close
customer relationships result in the
provision of the latest information.
VMOG UK has a significant advantage
over our competitors in the North Sea,
due to our supply route allowing a degree
of flexibility. Therefore, when customers
seek to change their drilling programmes,
we are able to investigate how best
to accommodate them. Our consignment
stocks also assist in these situations but
they are, nevertheless, a challenge to coordinate.
Caroline MacDonald: What interests you
most about your job
Emma Henderson: The element which
I enjoy most in this job is the variety of
each day and the daily interaction with
people from other companies. When an
urgent, unforeseen requirement is
requested at the last minute and I am
able to co-ordinate a delivery in a very
short space of time, I experience a great
sense of achievement.
Caroline MacDonald: And the future
Emma Henderson: Looking to 2006, I
will be focussing on VMOG UK’s
Norwegian operations and on developing
the supply of services to our Norwegian
customers. With all of my additional responsibilities
added to the fact that we are
experiencing such a buoyant and busy
market, exciting and busy times are ahead
and I positively relish this fact.
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SALES ORGANIZATION
Sylvia Lassalas, Sales Administrator Manager:
“Sales administrators interface
Sylvia Lassalas keeps a watchful eye on the seven sales administrators
in her charge. She spent ten years as a sales administrator
herself and adopts a flexible approach to the management
of her all-female team.
From left to right:
Sylvia Lassalas
and Marie Querrien,
Sales Administrator.
Sylvia Lassalas was a sales administrator
for ten years before
being appointed manager of
VMOGF's Sales Administration Department.
This means that she knows all
there is to know about this vital part
of the company's sales function, which
provides one-to-one backup to different
sales executives in the management
and follow-up of customer orders.
Sylvia Lassalas stresses that her long
experience in sales administration is
important, as one of the main aspects
of her duties is giving assistance to the
members of her team. The seven young
women under her watchful eye have
an average age of around thirty, and
Sylvia is ready to step in at any time if
difficulties arise. As she freely admits,
her role is to make sure that the wheels
keep turning smoothly. As Sylvia explains,
this day-to-day support is not just
a matter of sorting out any problems
which crop up: "My job is all to do
with continuous improvement, and
this means that I am constantly trying
Aaron Brammer, Sales Manager:
“Good products, smart services
33-year old Aaron Brammer has been selling tubular products for the oil and gas
market for around five years. Originally from Kansas, he joined the staff of V & M
TUBES' Oil & Gas Division when the Vallourec Group bought the North Star Steel
company, which has since become V & M STAR. A few months ago, he took up the
position of VALLOUREC MANNESMANN OIL & GAS FRANCE's (VMOGF) Sales
Manager for the West African market at the Group's headquarters at Boulogne in
France, and is gaining valuable insights into how the world market operates.
“
Iaccepted three missions when
I joined VMOGF in the spring:
my main responsibility is to
look after the West African market,
my next task is to coordinate our
commercial relationships with Exxon
Mobil worldwide, and I also have to
share my experience of independent
companies in the U.S. The scope of
my job is wide and varied, and I feel
that it is fairly typical of the way our
Division handles the careers of its
sales managers. As far as I'm concerned,
it's a win-win relation ship:
I was born in Wichita, Kansas and the
years I spent with North Star Steel
(now V & M STAR) gave me a thorough
knowledge of how the American
majors and independents operate and
what they need. This is basically what
I have to offer, and in return I get the
chance to work at the Group's headquarters
in France - a part of the world
I didn't know before. The oil and gas
market is truly international: you have
to be free to travel a lot and have a
good overall understanding of the
challenges at hand. This is why my
wife and I decided to move away from
Houston and base ourselves in Paris
for a while."
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with everyone”
to identify malfunctions, determine
whether they are recurrent problems
and putting solutions in place to ensure
that they don't happen again. I need to
analyze any questions which arise as
objectively as I can, so that the answers
I give are useful for all members of the
Department."
KEY FUNCTION
In addition to hiring sales administrators
and looking after their development,
Sylvia also represents the members
of her team with the various
departments they work with. For
instance, if there is a need to make sure
that information flows smoothly to and
from the production department,
Sylvia is the person who will go to the
plant to find out what production staff
think and recommend. She has also to
ensure that the workload generated by
the different markets handled by
VMOGF is shared efficiently. This
means that some sales administrators
will be teamed up with just one sales
manager, while others work with three
or four – the aim being to make sure
that nothing prevents the sales managers
from spending maximum time
with their customers.
She stresses that "our sales administrators
is the interface with customers,
sales managers, plants, billings,
accounts as well as with logistics.
There are a large number of fairly
complex procedures in place, as we
have to deal with a wide variety of
contacts, whose interests may not
always appear to be the same. For
example, it is not difficult to understand
that our customers want products
delivered as soon as possible or that
our plants have scheduling constraints.
It is then evident to see the qualities
required for the key functions
performed by the sales administrators.
Although I'm not intending to
apply "positive discrimination" of any
kind, I must admit that these qualities
are often to be found in young women
with at least a diploma in international
business, plus two years' work experience.
Provided that they possess, or
can rapidly acquire the ability to
manage priorities, I think that women
do this job better than men, as it
demands a great deal of attention to
detail and requires a considerable
amount of tact. Let's admit it as well,
a female voice sounds much nicer on
the phone!"
and knowledge management...”
DEDICATED
TO THE JOB
"Up until now, I've been lucky enough
to work for companies which were
willing to take the risk of giving young
staff a high degree of responsibility.
This forces you to grow up fast in your
job, as each day brings a fresh set of
challenges. In my opinion, people
working in the sector have to possess
three qualities: they need to remain
open-minded and enthusiastic, they
have to pay great attention to detail
and they must know how to share
knowledge. These qualities are all
essential for the complex markets we
operate in. One of the major advantages
of working for a large international
group is that you gain experience in a
wide variety of areas, and what goes
along with this with VMOG is that
you have to find ways to channel and
share this experience. We are working
hard to emphasize the ways in which
our products and services are different
and offer added value: any new ideas
or positive initiatives need to be made
known as widely as possible. I'm thinking
of things like the innovations in
maintaining and managing inventories,
the general acceptance of VAM ® TOP
products and the environmental benefits
of CLEANWELL ® connections. With
all these strong cards in my hand,
I'm optimistic about our future, and
confident that we will make progress
with our customers."
From left to right :
Aaron Brammer
and Deborah Obadia,
Sales Administrator
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SALES ORGANIZATION
Nathalie Quinquis, Sales Administrator:
“Self-motivation, organization,
the human touch... and character”
Nathalie Quinquis (26) has been working as a
sales administrator with VMOGF for two years
now. Nathalie holds a certificate in international
commerce, and here talks frankly about
what her job means to her.
“
Ihad a number of temporary jobs in
import and export departments
before I came to VMOGF. The
last company I worked for was operating
in a market which was certainly very
different from the oil and gas sector: they
made inflatable boats! My job there was
different because customer relationship
and teamwork were not as well developed
as within VMOGF. I am now working
in tandem with four different sales
managers: Pierre-Marie Reymondon,
Olivier Brun, Virginie Bleitrach and Aaron
Brammer.
SALES MANAGERS
From my point of view, a sales manager's
main role is to spend as much time with
customers as possible. Sales managers bring
in the orders and it is my responsibility to
increase the customer service. Don't get
me wrong, my job is not just a matter of
registering orders, and my relationship with
the sales managers is not strictly hierarchical.
The sales manager and the sales
administrator work side by side, both of
them have their own area of responsibility
but the same objective: making sure that
the customer is satisfied.
... CUSTOMERS
Customers satisfaction is essential. This is
the reason why we improve customer service
every day to meet their expectations. We
want the customers to get their products as
quickly as possible, I do try to get the shortest
lead time from the plant. But I also have
to defend VMOGF’s interest. For instance,
sometimes we cannot cancel an order even
if the customer requires it. As we represent
the company, we have to be able to satisfy
the needs of the clients taking into account
the commercial policy of VMOGF.
... SALES ADMINISTRATORS
Putting it another way, what I am saying is
that sales administrators need to combine
a wide range of qualities: they need to be
able to listen carefully to the people and be
open minded, they need to be pro-active
and occasionally take important decisions,
they must be well-organized and flexible
without appearing too lax. It's a very rewarding
job though, and I've not been tied
to my desk all the time while working with
VMOGF. I regularly attend meetings at
our plant in Aulnoye and sometimes get
the chance to visit the customers."
Selling pipes to Central Asia:
Pioneering new markets...
As a pipe producer exporting world-wide, how do you react to political upheavals
that can entirely wipe out markets For Hans Schier, Sales Manager at
VALLOUREC MANNESMANN OIL & GAS GERMANY, there is only one thing to do:
"Roll up your shirt-sleeves and make a new start!" V & M REPORT talked with this
sales professional who, over the last ten years, rebuilt the Central Asian pipe market
which had totally collapsed on the implosion of the USSR.
V & M REPORT: Mr Schier, why did
market outlets vanish in the early 90s
in all those Caspian Sea states which
boast abundant primary resources
Hans Schier: Right up until the collapse
of the USSR, sales to Caspian
Region outlets were centralized through
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Hans Schier – Sales Professional
of the Old School
Hans Schier began working in the pipe business
when he joined Mannesmann Trading in 1973.
He was the salesman responsible for boiler and
precision tube sales in Europe for two years.
He then focused on the USA and Canada.
In 1989, he moved from Mannesmann Handel to
Mannesmannröhren-Werke. One year later,
Hans Schier was granted commercial power of
attorney and, as sales manager,
oversaw sales of all semi-finished products,
steel slabs and continuously cast tube-making
rounds manufactured at the Duisburg-Huckingen
steelworks. He was also in charge exporting ingots
from the Bous steelworks.
In the mid-1990s, Hans Schier took on OCTG sales
(casing, tubing, drill pipe) to Russia, Central Asia
(Caspian Sea) and Eastern Europe – initially under
the Mannesmannröhren-Werke AG banner, and from
October 1997 onwards under the new trading
name of VALLOUREC MANNESMANN OIL & GAS
GERMANY.
Hans Schier: Certainly, while still in
Europe, I did what I could to prepare as
much as possible at a distance. But there
were linguistic, organizational and logistic
problems that could only be dealt with in
the area itself. Not being highly versed in
Russian, and given that English is not
spoken in this region, the careful choice of
local interpreters and contact people was of
the essence. It all had to be done in the cona
trading company based in Moscow. All
pipe deliveries to the oil and gas producing
states bordering the Caspian Sea,
notably Azerbaijan, Turkmenistan,
Kazakhstan, and Uzbekistan, were handled
by Moscow. These structures disappeared
overnight, and buying decisions
were thereafter made in the states themselves,
either by their own national authorities
or by the major national producers.
V & M REPORT: How did your company –
then Mannes-mannröhren-Werke – react
to these sudden changes
Hans Schier: Initially, everyone involved
was totally shocked. Either we had
to find new market outlets at once – not
an easy task – or go onto short-time
working. The fact is that when I took
over the region in 1995, OCTG sales
were zero tons. It was then that our
company decided to allow oilfield tubes
to be sold directly to end users, by-passing
intermediate trading companies.
This was an immense challenge for me,
but the company was totally supportive.
I gladly took it on.
V & M REPORT: Obviously, you would have
had to prepare before going into these
territories. What was your strategic
approach at that time
text of journeys lasting several weeks at a
time. Do not forget that the distance between
east and west Kazakhstan is greater
than the distance between Norway and
Sicily. Let’s get it straight about the supposed
perks of long-distance company travel:
immense distances, Spartan accommodation
and tough negotiations are a constant
trial to even the most hardy of spirits.
V & M REPORT: Did anything immediate
come out of your efforts to develop
contacts
Hans Schier: Well, we talked with people
from the state, and also with influential
local project managers, and lo and
behold, our first successes soon followed:
orders for casing and drill pipes. It goes
without saying that the reputation of
our company and its products certainly
helped, as of course, did reference projects
•••
Baku, the Caspian Sea "oil town", is distinctly oriental in flavour.
The oriental factor also comes across in the way pipe sales are handled.
The regions around the Caspian Sea - and under it – are rich in natural resources.
Onshore, crude oil and gas are produced using time-honoured methods.
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SALES ORGANIZATION
V & M REPORT: You mentioned the different
decision-making set-ups in the
various states on the Caspian Sea. How
does this affect pipe sales
A Caspian Sea oil rig:
since the collapse of the
USSR, the V & M
Central Asian sales territories
for casing, tubing
und drill pipe product
groups no longer go
through Moscow but are
supported directly.
Bazaar in Uzbekistan:
much of both private
and public life in the
Central Asian republics
goes on outdoors.
we supplied all over the world. Most
important, personal networking should
never be underrated. In my case, this
meant going to the region several times
a year, just to keep up my contacts. It
was not long before such visits were supported
by technical colleagues, and so
we organized local seminars, and then
later on we set up a V & M TUBES
representative offices in Turkmenistan.
It all amounted to a steadily growing
order intake from these regions, between
15,000 to 25,000 tons annually
over recent years. I cannot help thinking
that we did a terrific job.
V & M REPORT: So, if keeping up to date
with contacts was tough, what about the
difficulties in delivering products in those
countries What sort of logistic problems
did you have
Hans Schier: It is the huge distances in
those parts which make absolutely spoton
logistic planning so vital. V & M
TUBES pipe deliveries go to the customer
via Belarus. That’s where they have
to be transhipped from EU wagons onto
Russian trains. We use GPS to tell us
precisely where a shipment is; this lets
customers know just where a delivery is
and what is in it – a much-appreciated
service. But by now even in Central Asia
customers are beginning to expect rather
more than just a straight pipe delivery.
The scope of service you provide is
becoming more and more important. In
response to this trend, we have placed
repair licensees with firms in Azerbaijan
and Kazakhstan, which makes it easier
to carry out any necessary maintenance
close to the customer and without
delay.
Hans Schier: In Turkmenistan and
Uzbekistan, our direct customers are the
state-owned companies Turkmenneft
and Uzbekneft. There is no way they
are going to send the pipe producers
invitations to tender. If there are any
inquiries in the offing, we are going to
have to find out about them on the spot.
Elsewhere, in Azerbaijan and Kazakhstan,
Western know-how and professional
standards are well established throughout
the foreign oil companies.
Essentially, our strategy in these regions
has to be seen as a need for direct customer
contact without exporters getting
in the way. That is the way we choose
to maximise our market knowledge so
we can react faster to customer requirements.
V & M REPORT: Finally, just a few words
about the Russian market – this is yet
another area where, under your management,
V & M TUBES started off afresh.
Hans Schier: This had to be rebuilt within
the same time frame as the Central
Asian market¬place, and here again
through intensive discussions with local
personal contacts. Our prospects in a
market for which Russia provides 85%
of the pipes, are linked to high and premium
quality products for oil and gas
fields, for example, wherever there is a
need for pipes resistant to sour gas or
collapse under external pressure. In
recent years, we've been very successful
in this market segment with our pipe
deliveries to the Gasprom fields in
Astrakhan and Orenburg. You have also
to take into account that only 15% of
the pipe demand is covered by import
and this amount is split among all the
Western producers and also China. To
hold on to and even strengthen our
share, we have to extend our presence
and further develop existing contacts.
View of Ashgabat –
palaces and parks.
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Jean-Pierre Peter, Regional Manager – Middle East
“Enormous!”
The Middle East possesses 75% of the world's proven oil
reserves, with 22% in Saudi Arabia alone. It’s an market that is
simply “enormous!”, as Dubai-based Regional Manager Jean-
Pierre Peter puts it. It's not just the size which makes this
market so special for the V & M TUBES Oil & Gas Division though.
While there is certainly a need to increase the volume of sales,
the challenge is also to diversify the type of products available
and to offer a full range of services.
T
he United Arab Emirates,
Oman, Qatar, Bahrain, Kuwait,
Saudi Arabia, the Yemen ...
these are countries belonging to the
Middle East region, which has been
managed by Jean-Pierre Peter for
almost four years now. Together with
Houston, Texas, this area is probably
one of the most interesting assignments
there could be for a Regional
Manager in the OCTG sector.
"Working in the place which holds
three quarters of the world's proven
crude-oil reserves is certainly very
challenging," explains Jean-Pierre
Peter, "especially since our customers'
requirements are so varied – from
4,000 tons of tube per year for
BAPCO in Bahrain up to 400,000 for
Saudi Aramco in Saudi Arabia. The V
& M TUBES Oil & Gas Division
now supplies around 30% of overall
local requirements for products with
high added value – particularly our
VAM ® connections range, although
one of our objectives is to increase our
market share in standard piping. Two
figures give some idea of what is at
stake in this gigantic market: Aramco
recently ordered 50,000 tons of tube
from us – the largest single order ever
placed with the Oil & Gas Division –
and is now looking to increase production
from 9.6 million barrels per
day up to over 12 million! Sales to
Saudi Arabia's national oil company
also account for a large percentage of
our sales to the Middle East, which is
hardly surprising as the country possesses
22% of the world's reserves."
THE BUSIEST REGION
FOR VAM ® FIELD SERVICE
Jean-Pierre Peter is also in charge of
VAM ® Field Service's activities in the
region, with ten or so field engineers
on assignments to rigs providing assistance
to customers. "The Middle East
is one of the region where VAM ® Field
Service is the most active," Jean-Pierre
Peter tells us, "as local oil companies
are now well aware that when you use
sophisticated products like VAM ® connections,
it's best to bring in outside
specialists rather than trying to take
on the work themselves. Take PDO of
Oman for instance. Although we don't
sell them any tube at the moment, the
company employs the services of
VAM ® Field Service under a very simple
contract arrangement where we
undertake to ensure that strings are
sunk into wells at a pre-defined speed.
We even get paid bonuses if the job is
done faster than the specified rate. As
I see it, this is an excellent example of
the way a gradual but profound change
is taking place in the way our customers
see the role we are called upon
to play. Their expectations now go far
beyond the ‘basics’ – product performance
and quality, strict compliance
with schedules and so on – they now
expect the full range of services which
go along with their objectives to take
on long-term contracts and not to pay
for tube until it is in place in the well.
We have already demonstrated that we
can provide this kind of service and are
now getting ready to extend this type
of development. We are particularly
interested finding innovative ways of
placing and tracking orders which fit
in with this general approach, although
it's still a little early to say much more
on this at the moment.
We've been in this region for a long
time and were here when Saudi
Aramco started in the early 70's. We
have a comprehensive product range
and our production capacity has grown
considerably since 1998. These factors
make me feel ready to take on any challenge
– despite my 43 years with the
Group!"
Jean-Pierre Peter,
has been working
for the group for
43 years. His experience
and training are in
chemistry and
metallurgy and he's
been in the OCTG
business since 1992.
He took charge of
the Middle East market
in 2002.
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 . 8 - F E B R U A R Y 2 0 0 6 11

SALES ORGANIZATION
Eduardo Munoz
Sale to Pemex...
Since October 2004, Eduardo Munoz is in charge
of the management of the sales team of Prinver
which includes 6 engineers located in all the
Mexican petroleum regions. Prinver considers
important the presence of petroleum engineers
in its sales team to be able to understand and
communicate easily with its clients.
V & M REPORT: What does Pemex
represent in Mexico, and internationally
Eduardo Munoz: Pemex Exploración
y Producción (PEP), the Drilling and
Producing branch of Pemex, is the third
largest crude oil producer and the first
company producing hydrocarbons from
Offshore reservoirs in the world. It is
the fifteenth gas producer, and ninth in
terms of crude oil reserves; twentyeighth
in gas reserves and ninth in gross
revenues.
Results obtained in 2004 are still ranking
PEP as the most important company
in Mexico and the main source of
revenues of the Federal Government.
As an average, daily production reached
3.383 million barrels of crude oil and
Didier Hornet, Deputy Managing Director
of OCTG North America:
“Selling OCTG
in USA, Canada
and Mexico”
In the USA, the division offers
to the market Plain End Pipe
(available for any type of
threading), API threaded pipes, VAM ® Premium threads
(on any available pipe), and more recently finished VAM ®
on our pipes.
Our North America manufacturing facilities include:
• V & M STAR with a steel plant and rolling mills in
Youngstown, Ohio, and heat treatment and finishing lines
in Houston, Texas.
• VAM PTS: offering premium threading services from
Houston, Texas
• Prinver for VAM ® threading in Mexico.
• VAM PC for VAM ® threading in Canada.
North American OCTG market can also be satisfied
through importations of tubes from V & M TUBES Europe
or from V & M do Brasil.
Customers are serviced from sales office based in
Houston, Texas, Mexico and Canada. Most sales in the
USA and Canada are invoiced to distributors who act
as partners to develop our contractual relationship with
end users. This is why our sales team has a double focus
on distributors as customers and on oil and gas companies
as end users.
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4.573 billion cubic feet of natural gas
which account for an increase from 0.4
percent and 1.7 percent as compared to
2003, respectively. PEP’s total sales were
561 billion pesos, 25 percent higher, in
real terms, than sales in 2003.
As a consequence of its high activity,
PEP is one of the highest volume
consumer of OCTG products in the
world.
In 2004, The OCTG market in Mexico
represented 180 000 tons for tubing
and casing (API and Premium) the size
of Premium market being 125 000 tons.
For this year, we are expecting an increase
of 12% for the OCTG Pipes
consumption. In the history of the
Mexican Oil activity, this year, all the
records of drilling and production will
be exceeded this year!
Vallourec through its company Prinver
provides the threading of VAM ® connections
as well as technical promotion,
field services and supplying of accessories.
V & M REPORT: And for Prinver
Eduardo Munoz: Pemex and its
Drilling Contractors represent 95% of
the threading activity of Prinver. The
rest is covered by New Comers which
manage Multiple Services Contracts for
Pemex and by CFE Federal Company
of Electricity with Steam wells.
V & M REPORT: What consequences
has this had in terms of organization,
products and services
Eduardo Munoz: PEP being a state
monopoly, Prinver’s commercial organization
is designed to work closely with
the main regional managers of Pemex
and CFE. This approach has a direct
consequence: the setting of the 5 branch
offices of Prinver promoting and offering
services in Reynosa, Poza Rica,
Veracruz, Villahermosa and Ciudad del
Carmen covering 100% of the customer
locations.
The promotional commercial strategy
is based on a large number of technical
presentations focused on specific requirements
and products applications. The
customer satisfaction and good relationship
are our main targets to perform
our objectives as leader in Premium
connection.
V & M REPORT: What would you wish for
in terms of your relations with Pemex
Eduardo Munoz: Our wishes are multiple:
To continue being a reliable source
of solutions for PEMEX requirements,
providing services and new products; To
be more proactive in our development
offering new services and products to
our major clients assuring our long term
relationship; To consolidate in front of
end users the VAM ® product family in
place and in development.
To participate in special projects providing
a package of solutions in order to
be considerate not only as a threader
company but also as a reliable source of
global technical solutions which benefits
of an international support from the
VAM ® family.
Eduardo Munoz is a
petroleum engineer with
16 years of experience
working in the commercial
team of PRINVER. At the
beginning of his career, he
was responsible of sales
and services in Offshore
region in Mexico, 2 years
after, he was moved as
regional sales manager
in South region.
In 1998, he was sent to
VMOG F to work 3 months
in a special project for R&D
in Aulnoye and 9 months
as Technical Sales Engineer
in Boulogne. After that he
was appointed as Marketing
Manager based in Veracruz
doing support of Technical
Sales for Canada.
In 2001, he was moved back
to Villahermosa where PEP
headquarters are located in
order to manage Marketing
and Development activities
for entire Mexico.
From the left to the right: Octaviano Atonal, Sales Manager South Region; Eduardo Munoz, Commercial
Director; Jose Manuel Antonio Almazan, Sales Manager North Region; Didier Hornet, North America
Manager; Adan Sandoval, Prinver Director General; Jesus Macias, Sales Manager Offshore Region,
Daniel Juarez, Sales Manager North Region; Nicolas Boruchowicz, Marketing Manager; Carlos
Alvarado, Sales Manager North Region
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 . 8 - F E B R U A R Y 2 0 0 6 13

SALES ORGANIZATION
V & M STAR: Nothing is possible
without the distributors
Brett Mendenhall:
“Upon graduating from Texas A&M University in 1998,
I began my professional career with North Star
Steel-Cargill Incorporated. Throughout the six years
I worked with North Star Steel, I was responsible for
selling and marketing various steel products throughout
the United States.
In April 2004, I joined V & M Tubes as the Coupling Stock
Sales Manager for V & M Star.
My current title with V & M Star is OCTG Sales Manager
for the US market. Currently, I am working with three
oilfield OCTG distributor companies and several oil
and gas companies that have drilling projects taking
placethroughout North America.
Representing V & M TUBES as an OCTG Sales Manager
allows me to sell tubular products to both the major oil
and gas companies, as well as independents.
My position allows me to primarily interact with
E&P companies that have tubular needs for deep
land wells or offshore drilling projects. My current
customer base includes companies like BP, Anadarko,
XTO, Newfield, ExxonMobil, Dominion, and Marathon
Oil Company.
V & M REPORT: Why are distributors so
important for V & M Star
Brett Mendenhall: In the midst of the
early 1980’s oil crash, US E&P companies
were burdened with billions of dollars of
tubular inventory (approximately 7,000,000
net tons). After taking several years to sell
this pipe at a significant loss, US E&P companies
made a strategic decision to no
longer inventory large amounts of
tubular products. Simultaneously, several
oilfield and supply stores were filing
bankruptcy due to the dramatic negative
change in tubular prices. The major E&P
companies had come to the conclusion that
maintaining an OCTG inventory was
expensive and inefficient. Thus, US E&P
companies decided to return the responsibility
of managing tubular inventories to
the distributors and tubular manufacturing
facilities. This distinct change in strategy
from the US E&P companies required
distributors to become a more integral
piece of the supply chain for OCTG
products sold in the US market. Requiring
distributors to carry OCTG inventory
allowed the US E&P companies to receive
a just in time delivery and more importantly
relieved them of dealing with the
volatility of the tubular market that was
experienced in the early 1980’s. Today, US
E&P companies rely on distributors to
accurately forecast, inventory, and deliver
their tubular needs by working directly
with mills like V & M TUBES. In today’s
market, V & M TUBES works directly
with distributors and end-users to gain
access to strategic drilling programs in
regions that require alloy and carbon
seamless OCTG products.
In the end, distributors are important to
V & M TUBES OCTG North America
because the E&P companies choose to
source tubular products through distribu-
tion in order to decrease their financial
exposure to the fluctuations of the US
tubular market. Furthermore, working
with distribution allows US E&P companies
flexibility when dealing with issues like
transportation of OCTG products to
the rig site, residual pipe returns, and threading
plain end pipe with premium connections.
V & M REPORT: What are the specific expectations
of distributors How have you organized
your structure to meet these expectations
Brett Mendenhall: V & M STAR and
US E&P companies expect distributors to
have the right mix of OCTG products in
their inventory and to be able to deliver
this pipe in the time period specified. US
E&P companies also expect distributors
to be able to sell this pipe at fair market
value. Although these two expectations
appear simple, they are not. In fact, these
expectations typically determine the
long-term viability of a distributor in the
US OCTG market.
Constant communication and coordination
between V & M TUBES and its
distributors is required in order to meet
the expectations of US E&P companies.
Thus, V & M TUBES has built its
production, quality, and marketing model
with distribution and US E&P companies
in mind. Additionally, V & M TUBE’S
business model in the US OCTG market
relies on transparency and a high level of
trust with our select distributors. V & M
STAR coordinates its manufacturing cycles
(approximately 40 days) towards the
expectations of the distributors and the US
E&P companies. V & M STAR produces
its most common OCTG products every
cycle. V & M STAR’S intent when
determining cycle production is to assist
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distributors in turning OCTG inventory,
while never jeopardizing deliveries to an
end-user.
US E&P companies also expect distributors
to deliver high quality OCTG products
in a timely manner. V & M TUBES works
with all of our distributors through various
tools, such as V & M STAR Online, to
ensure that information communicated is
timely, accurate, and useful. Also, V & M
TUBES meets with our distributors semiannually
to discuss current events and quality
levels being achieved at V & M TUBES.
V & M TUBES has spent extensive time
and capital resources on becoming the
quality leader of seamless OCTG products.
Commercially, V & M TUBES remains
focused on long-term alliances with
distributors and end-users in the US market
that is built on trust. This mix of long
term price agreements with majors and
large independents and taking advantage
of spot market opportunities continues to
be a successful strategy for V & M TUBES
in the US market.
V & M REPORT: Describe your perfect
distributor Does it exist
Brett Mendenhall: Today’s distributor in
the OCTG market in North American
must possess several attributes in order to
be successful long term. First, a distributor
must be financially sound. Over the
history of the US OCTG market, tubular
prices have seen dramatic increases, like
the past 24 months, and dramatic decreases,
like 1999. A successful distributor must
have the commercial presence and financial
backing to withstand this volatility in
tubular prices.
Second, a successful distributor must
create a network of contacts within the US
E&P companies. Distributors must
possess the ability to know the engineers,
the procurement groups, and the drilling
programs of active E&P companies that
are operating in the US.
Thirdly, a distributor must have access to
a full range of seamless and ERW pipe with
API or premium threading options.
The domestic seamless providers in the
US OCTG market are V & M TUBES,
US Steel, TCA, Koppel, and Rocky
Mountain Steel (pending start-up).
Currently, there are approximately 1,500
rigs running in the US. Approximately
60% of these rigs are drilling in depths that
are greater than 10,000 feet, which
typically requires an alloy seamless OCTG
product. In order for a distributor to grow
in the US alloy seamless OCTG market,
it must have strong relationships with
seamless suppliers.
At V & M TUBES, we have a select group
of OCTG distributors that all happen to
be perfect for V & M TUBES. All V & M
TUBES distributors serve a strategic
purpose that assist V & M TUBES in
being an OCTG leader of the US market.
Our distributors are financially sound,
commercially savvy, and have strong
relationships with the US E&P companies
that are strategic to V & M TUBES.
Utilizing the global strengths of V & M
TUBES and the strengths of our key
distributors allows V & M TUBES to
successfully maintain a significant share
of the North American OCTG market.
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 . 8 - F E B R U A R Y 2 0 0 6 15

SALES ORGANIZATION
V & M do Brasil : The conquest
Edgar Mahfuz
has a Bachelor of
Science degree in
Marketing from
University of
Massachusetts at
Dartmouth and
specialization course
in International Trade.
He has joined former
Mannesmann SA in
1992 at the Export
Sales Division in
São Paulo as internal
sales working mainly
with North American
market on several
different products
ranging from Heat
Exchangers to Project
Line Pipe. He was
transferred to the
Oil & Gas Division in
Rio de Janeiro
in 2000 as OCTG
Export Sales Manager
with special focus on
the Latin American
market.
V & M REPORT: For OCTG, are there any
outlets for V & M do Brasil other than
Petrobras
ply high-end products such as High
Collapse and Sour Service grades with
VAM ® Premium connections.
OCTG exports before 2000 from Brazil
averaged 30,000 tons per year. For 2006
we are forecasting over triple this quantity
reflecting an increase in sales specially
to South America, North America
and Africa.
V & M TUBES is known in South
America to be manufacturer and supplier
of high quality pipes and VMB is approved
by major oil companies.
V & M REPORT: What are your export sales
targets
Edgar Mahfuz: Our main target is to
increase market share in South America
focusing in high-end products and services
and support the Oil & Gas Division
global policy on other strategic markets
such as North America, Asia and Africa.
Our main objective is to get closer with
customers and aim for long term relationships,
offering the full range of products
and services that goes from stock
management to field services, and timely
delivery that is very important specially
in South America where delivery requirements
are normally very short.
As V & M TUBES Group’s arm in South
America our job is to obtain reliable market
information and identify market need and
commercial opportunities for the Group.
V & M REPORT: How have you organized
your structure to achieve these
Edgar Mahfuz: In South America we
work with agents in each country, which
means that we have to communicate constantly
with transparency towards them
transmitting what are our targets and what
is their role in this business.
They are our eyes in the market and the
day-to-day contact with the end users.
They must be well informed on V & M
TUBES’ policy and product range and
inform us monthly what is happening on
Edgar Mahfuz: Petrobras is one of V & M
TUBES main customers. Both started
together in Brazil in the early 50´s and
likewise, both grew internationally seeking
other markets. V & M TUBES supplies
OCTG to Petrobras not only in
Brazil but also in other countries of South
America and more recently North
America, Middle East and Africa.
Currently close to 60% of the OCTG
production in Brazil is being exported.
The direct responsibility of V & M do
BRASIL (VMB) is in South America.
Nevertheless, large quantities are also
allocated to other markets such as North
America, Africa and Asia to support the
Oil & Gas Division’s global policy for
strategic markets and customers.
In 2000, V & M TUBES invested in
modernizing the Brazilian mill with
special emphasis on OCTG, qualifying
VMB to new grades and proprietary
VAM ® connections enabling us to quote
on a large range of products. This opened
new doors for VMB´s OCTG export
business. Today we are qualified to supeach
market to enable us to participate in
all tenders with chances of success.
On VMB´s side, we travel to each country
to visit the end users whenever possible
to give commercial and technical support.
Furthermore we organize technical
seminars and once a year organize an
Agent Meeting at the mill with all agents
where each one presents their markets
talk about the competition and tells us
what they expect from our side to help
meet customers demands.
We maintain also a very close contact with
other V & M TUBES commercial offices
in North America and Europe to benchmark
and capitalize on the expertise that
each one has. For example, if there is a
tender for an European oil company in
South America we get in contact with
other V & M TUBES offices that already
has experience and contacts with this
company abroad to verify how we can
increase our chances of being successful.
In 2004 the OCTG division became
more integrated as Sales and Marketing
joined Production in a single department
managed by Mr. Tancredo Martins Neto.
This enable the areas to get closer and
more committed one to the other, aiming
for the same objectives.
Internally at VMB (as an integrated company)
we count with a very motivated
team on all involved areas to honor with
our commitments and improve our offers
to the customers. Sales works very closely
with: marketing, logistic, technical
sales, technical support, R&D, production,
quality control, production planning
and financial teams. There is constant
communication and synergy between all
and this is a key success factor for our business.
We also support the idea of receiving
visitors (customers) from other countries
to our mill to visit our facilities and get in
contact with people from our mill that
normally does not have this direct contact
with the customers. Customers can
see how well equipped and clean our mill
is and how motivated the employees are.
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Pipes arriving at the port
of export areas
This is a win-win situation where the visitor
leaves the mill with an excellent
impression and the employees get to
know to whom the pipes are going, and
this increases commitments.
V & M REPORT: What results have you already
achieved
Edgar Mahfuz: The results are very positive.
Capitalizing on the expertise of each
one, we can obtain businesses that are
quite challenging.
As an example Petrobras has an operation
in south of Bolivia (Yacuiba – San
Antonio and San Alberto Fields) where
it is very difficult to deliver the pipes to,
due to its location and bad country infrastructure.
Dirt roads in the jungle require
very careful and delicate logistic solutions.
There is a certain time of the year when
pipes can be transported to avoid raining
seasons and the pipes must be cut in special
length to fit the trucks that leaves Belo
Horizonte, Brazil, to go directly to the
well site. All areas of the business have to
be involved in order to deliver the right
material in a timely manner and at the
same time to grant spot repair license to
local shops to prepare ourselves against any
possible damage during transportation.
When we work together the chances of
everything coming out as planned is very
high and it is most gratifying to see the
customer´s satisfaction after the job is
completed.
In North America our job is to give support
to local V & M TUBES policies. To
increase our sales in the USA, we had
meetings with people from V & M TUBES
Corp., V & M STAR, and V & M TUBES
Europe, to identify specific items that
could help increase VMB´s output to this
market and at the same time complete
V & M STAR´s range and increase overall
V & M TUBES´ market share in this
country. The results were very good. We
implemented a system of collaborative
planning where every month we re-analyze
the quantities (based on current production
schedules) and market prices. As a
result VMB´s dispatch to the USA has
increased and V & M TUBES is now supplying
products (EUE Tubing for example)
that was not being supplied in the past.
Pipes stored
in Rio port
V & M do BRASIL
sales team in Rio
de Janeiro office
V & M REPORT: How do these export sales
relate to those of the other entities of the
Oil & Gas Division of V & M TUBES
Edgar Mahfuz: Basically we follow a
global policy and our targets are very similar
to the targets of the other entities of
the Oil & Gas Division of V & M
TUBES, respecting the local characteristics
of each market (think global, act local).
Our direct responsibility at VMB is with
the Latin American market but, we work
very closely with other V & M TUBES
commercial offices to support the global
strategy in their markets.
I have already mentioned above the
improvements on North America but
there is also a significant part of our business
directed to other markets in Africa
and Asia, for example, that are strategic
for the group and we are proud to be a
part of it.
An example of success story is the project
we have with Exxon Chad operation in
Africa, (in partnership with Sumitomo
Corp.) since 2001 where the commercial
responsibility belongs to VMOG France
and the pipes are coming from VMB. We
have average shipments of 10,000 tons per
year (volume in 2006 to be higher) where
we had never delayed one single order.
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 . 8 - F E B R U A R Y 2 0 0 6 17

SALES ORGANIZATION
P R O D U C T
José Pinto, Marketing & Development Manager:
“A dream job”
After obtaining
his qualifications
in mechanical
engineering and
welding engineering,
José Pinto began his
career in the technical
sales promotion
department of a
company specializing
in thermal spraying
surface treatment.
He joined the Quality
department at the
V & M TUBES plant at
Rath in Germany
in 2001 and then
moved on to become
Marketing &
Development
Manager for VMOGG
at the end of 2003.
It's not just promoting products, it's responding to
the customer's real needs; it's not just answering
customer's questions, it's suggesting better alternatives;
it's identifying future market trends with the
R & D department; it's making sure that current expectations
can be met by existing production capacity;
and it's much more besides. José Pinto's job as
Marketing & Development (M & D) Manager with
VALLOUREC MANNESMANN OIL & GAS GERMANY
(VMOGG) is a key role, which he wouldn't change
easily for anything in the world.
José Pinto considers that his job as
Marketing & Development Manager
is one of the most important and
the most interesting ones that VMOGG
could offer. "It occupies a pivotal position
between the technical aspect, which
I find fascinating as an engineer, and the
commercial aspect, which enables me
to promote and support orders and to
develop human relationships at the same
time. I have to take the aims and constraints
of our customers, my colleagues
in R & D, production and sales on board
and come up with the best possible solution
for all concerned. In practical terms,
this means listening to our customers to
find out what their current and future
needs are. I tell our R & D, production
and sales departments what I have learned
and then go out and promote the
solutions we have developed with full
conviction. With risers (pipes between
offshore platform and seabed) for example,
this often involves large projects and
I have to coordinate input from many
different sources. I am also often called
upon to tell people about our Group and
the products we offer even though no
specific inquiry has been made, particularly
as product leader for sour service
grades (special material for wells con-
taining sulfuric acid H2S). The
Marketing and Development function
is crucial as it makes a major contribution
towards determining how we act in
the marketplace."
MISSION TO CHINA
"A good M & D manager needs to be a
good listener and possess sound technical
knowledge. The position also
demands the ability to get on with people,
considerable tact and the capacity to
form reliable and motivated networks.
The task is made easier at VMOGG by
the fact that the company appreciates the
need to share knowledge and experience
in a regular, structured manner. The job
also demands mobility as you have to travel
a great deal in this global market. I
currently visit China every two or three
months as I am very much involved in
this market. I should mention that some
of the Chinese oil and gas producers are
planning to quadruple their production
by 2007! Apart from the potential volumes,
the extraction conditions in the
country are frequently among the most
difficult in the world, and so you can well
imagine why I've no immediate intention
of changing my job."
VAM ®
we’ve
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TOP: together,
set the standard!
During the 1st half of 2005,
more than 50% of the VAM ®
connections supplied to the
OCTG market were VAM ® TOP
connections.
In keeping with tradition, the VAM ®
family continues to reinforce its
leading position in the premium
connection market: VAM ® TOP is today
the number 1 premium connection used
by the oil & gas operators.
Indeed, most of V & M TUBES’ customers
have today standardised their
well design using VAM ® TOP connections
for all their threaded and coupled
applications.
VAM ® TOP STANDARDISATION:
A 3 PHASE PROCESS
Since the 80’s, and the introduction of
V & M TUBES’ NEW VAM ® premium
connection, NEW VAM ® rapidly
became a standard solution throughout
the oil and gas business, offering a good
combi-nation of sealing performances,
relia-bility and economy that was very
well received by the industry.
INTRODUCTION OF VAM ® TOP:
A SOLUTION WITH IMPROVED
PERFORMANCES
In recent years, significant advances in
drilling technology have taken place to
keep pace with the ever increasing
demands of oil and gas producers: wells
are deeper, increasingly deviated with
horizontals completions extending further
and further. As a result, casing and
tubing have had to bear higher compression,
external pressure, bending, and
torsional loads. Fatigue is also a consideration,
where casing is used as a riser.
Resulting from extensive research and
development, VAM ® TOP was then
born in the 90’s, as V & M TUBES’ answer
to meet these new demands.
1 ST STEP TOWARDS
STANDARDISATION
First introduced for very specific applications
requiring larger performance
envelopes than could be achieved with
existing products, VAM ® TOP was
quickly recognised by some operators
as the connection of choice for all their
wells requiring a premium gas tight
solution. This is true from the least
severe to the most severe applications
such as HPHT wells (High Pressure
High Temperature) where reservoir
pressures can exceed 10 000 psi.
A MORE PRO-ACTIVE
APPROACH
As the popularity of VAM ® TOP increased,
the VAM ® family realised that its
main competitor, which would likely
slow down its growth, was actually
NEW VAM ® ! The VAM ® family then
decided to start a world wide campaign
100 %
to encourage all NEW VAM ® users to
switch to VAM ® TOP, convinced that
VAM ® TOP was the best candidate to
become the industry reference for many
years to come.
A VAM ® TOP marketing plan was
then established with the assistance of
V & M TUBES' OCTOG sales team
to assist all main Premium Connections
users to switch to VAM ® TOP. The
transition from NEW VAM ® to VAM ®
TOP was carefully monitored, illustrating
the seamless and irreversible trend
among our customers worldwide.
The VAM ® TOP standardisation was
achieved through the implementation
of key actions such as:
• the development of the VAM ® licensee
network
• the definition of specific commercial
incentives
• the communication of the product
market trends
In accordance with the technical evolution
of the oil & gas industry, the VAM ®
users have standardised with the TOP
end of the VAM ® product range.
Together with our customers, we have
set the industry reference for premium
connections!
VAM ® TOP versus NEW VAM ® - % market share
% NEW VAM ® % VAM ® TOP
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2006
H1
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VAM ®
SERVICES
VAM ® documentation on line:
on your marks, get set, download!
The difficulty in providing the necessary level of security on the documentation provided to the VAM ® licensees
network called for a great deal of development before the OpenPortal system could be put on line. Everyone
now has their own USB dongle iKey with the related PIN code and can get hold of the technical information they
need – not just in hard-copy paper format, but in PDF format over the internet. This may just be a small step in
terms of technology, but it represents a giant leap in the relationship between V & M TUBES' Oil & Gas Division
and its 120 licensees. François David, Assistant General Manager of VAM ® Services, Regis Krzyzaniak, the
R & D department's SDI (Studies Documentation Industrialization) Manager and Alain Barbay, Manager of
Technical Documentation explain what the change means to them.
François David, Assistant General Manager of VAM ® Services:
“More than 3,600 documents
are already on line”
“
adily as the USB dongle iKeys have been
issued to licensees. The keys are often
installed when we make our regular audit
inspections, and now nearly 90% of licensees
have them. Users have logged in over
11,000 times since we started the service,
amounting to between 25 and 30 connections
every day. On top of this, we are also
asked up to five questions a day on our
online help service, Mr. Help. 95% of our
licensees will have one or more USB dongle
iKeys in the next few weeks – this
means everyone with web access. As far as
we can tell, the remaining 5% are in areas
which the Internet technologies have not
yet reached. In these cases, we download
the documents for licensees and send them
hard-copy versions.
As well as doing away with sending countless
packages of paper back and forth, what
I find interesting about the system is that
it has also generated a great deal of feedback.
By analyzing downloads, we can get
Long months of
relatively complex
development work
was needed to give our
downloadable technical
documents traceability by
copying the name and code
number of the VAM ® franchise-holder
as a watermark.
We went for a solution
which uses a locked
PDF file with the user's fingerprint
– a lot more secure
than the old system based
on sending out documentation
on paper. We had to wait until
February 2005 before we could officially
launch our OpenPortal service. The service
started with around 1,200 documents,
and we have been adding content ever
since. We now have over 3,600 documents
in the system. At the same time, viewing
and downloading figures have grown stean
idea of what our licensees actually need
as far as product ranges are concerned, and
their questions tell us about how clear and
detailed our documentation is for them.
This means that we are now in a position
to offer them better service.
We can now be justly proud of the success
we have had with the OpenPortal system
and the very positive response it has received
from our licensees. There was a genuine
demand on our huge network for documentation
which could be accessed quickly
and easily. Our new system clearly meets
this demand. Looking ahead, plans include
migrating our licensee database over to
OpenPortal with company information,
contact details, qualifications, and other
data – some of which the licensees will be
able to update themselves, and VAM ® Easy
Gauge, an online gauge leasing module
which has just been brought in on
OpenPortal. We're certain to be talking
to you about this later..."
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Regis Krzyzaniak, SDI
(Studies Documentation Industrialization)
Manager with the R & D department:
“Real-time access
to the latest updates”
“
OpenPortal is an IT solution
developed by Illico which has
been customized to our specific
requirements. We know Illico well and
have worked with this partner on all of the
versions of our Internet site (www.vamservices.com)
right from the start. We also
had help from the Vallourec Group's data
center (CTIV) in putting VAM ® documentation
on line, as well as from the
V & M TUBES Oil & Gas Division's
R & D department, where I work.
I'm in charge of the SDI group, and three
years ago we decided to rethink the way
documents are generated and use a techni-
cal data management system (TDMS)
which was better suited to meeting the growing
demands of the R & D department
and VAM ® Services. More recently, we
have deployed software which works with
this database to quickly and automatically
export updates of documents like manufacturing
notes, technical specifications for
licensees (TSLIs), and so on to OpenPortal.
Licensees now have access to the latest versions
of the documents we produce, in what
amounts to real-time. We obviously could
not have achieved this kind of immediacy
when we were sending out paper documents.
It is a way of making the licensees
more productive and enhancing the quality
of service they provide to their customers.
The advantages of portable documentation
do not stop there: the system's versatility
will soon allow us to put not just one, but
two versions of our drawings on line: both
metric and imperial. This will mean that
licensees in the U.S. and elsewhere will no
longer have to redraw these documents. We
are currently redesigning the format of our
inspection documents to bring them more
in line with our licensees' expectations, showing
the dimensions to be checked, the gauges
to use, production methods and acceptance
criterion. In the longer term, there is
no reason why we cannot consider developments
like online broadcasting of color
photos, video clips or animated diagrams
for teaching purposes."
Alain Barbay,
Manager of Technical Documentation:
“24/7 access”
“
Iwas drowning in a sea of paper the
last time you came to my office in
back June 2004. I was sending out
up to 65,000 copies of documents a year
to our 120 VAM ® licensees. As you can
see, my desk is now totally uncluttered and
I can devote more time to running the network.
Digital technology has not only enabled
us to give the system a good springclean,
it's helped improve the efficiency
and relevance of the service we provide to
our licensees. Our licensees are spread
throughout the world, and with different
time zones and working patterns, some of
them are hard at work while members of
VAM® Services staff are fast asleep or on
vacation. Our OpenPortal system never
sleeps, and our licensees can now get hold
of the information they need at any time
of day or night. François David and Régis
Krzyzaniak have both stressed that the
information is right up-to-date, another
important aspect is that it is available at all
times. I send an e-mail to all qualified
licensees when an update is ready, including
a link allowing them to download it
right away. Licensees can ask me for a
document they cannot find and know that
they will get it back via the Internet
straight away. Up until fairly recently, they
had to send back a paper copy of the version
preceding the latest update. It all
seems so long ago now!"
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SPOTLIGHTS
A worldwide presence to serve the Drilling Business
With the acquisition of OMSCO on October 1 st , 2005,
VALLOUREC & MANNESMANN TUBES (V & M TUBES) has
firmly settled its world wide presence to serve the Drilling Business.
The synergies between our European operations, our Houston,
Texas, operations and a single Sales & Marketing Group taking care
of any of our customers needs where ever required are evident :
• OMSCO is bringing its huge practical knowledge of drilling
operations and its amazing network in Houston
• V & M TUBES reputation is known worldwide for the quality
of its pipes, able to serve the most critical applications, and
definitely offers the strongest R&D ressources both in pipes and
connections.
With our fully integrated production route from steel to fully
finished products, the complete range of tubular goods (from
kellies, drill pipes to heavy weight and drill collars), and the ability to
deliver from the most standard products to the highest premium sour
Deputy Managing Director
of Drilling Products
service products, we can garanty
the full quality control of the broadest
range of products.
But we also want to propose to our drilling
customers the strenghts that have
made the VAM ® product line a leader
and a must in the OCTG premium business
: quality of service, permanent innovation, taylor made solutions,
world wide presence through our licensee network are some of the
examples to be highlighted.
Our Sales & Marketing team together with the R&D team will be
pleased to address our drilling customers needs.
This is the reason why the VALLOUREC Group has decided to create
a specific and dedicated Drilling Products organisation within the
Oil & Gas Division. Our challenge is to propose the following
statement : « Don’t worry about tubular issues, we’ll take care ! ».
Alberta oilsands
175 billion barrels of proven oil
reserves 2 nd in the world
The Oil Sands region covers an area 54,363 sq/miles
or an area larger than the state of Florida. Approx
20% of these reserves are recoverable using surface
mining techniques the remainder will require in-situ (drilling)
technologies to produce. Virtually all Major Operators
in Canada have plans for Heavy Oil Projects over the
coming years.
The majority of the in-situ technology will require enhanced
recovery techniques (typically thermal) resulting in
significant stress on the casing and the connection.
These wells are all highly deviated as the production liners
are horizontal and with well depths in the 400 meter range
requiring a connection that can with stand the bending
and the combined stress loads once the wells go into production.
VAM ® SW is being widely accepted as a reliable solution
to this high stress environment. Local threading is considered
to be an important quality requirement due to the
potential transportation damage to the connection and
the type of threading inspection generally required. VAM
PC has been offering with Vallourec Tubes Canada a Semi-
Mill option (plain end tube supply packaged with local
threading) that is receiving very good acceptance from
the Industry.
Scenes of Rio de Janeiro
* One of the drawings that
were exposed - Carnival Group -
51,00 x 73,00 cm - 2004
Through the policy of integration with its local communities,
V & M do Brasil seeks to fulfill its social obligations, including
promoting and offering – to its internal and external publics
– high-quality cultural activities. A recent example includes the
“Cenas Cariocas” exhibition by Brazilian artist Lan. The exhibition
commemorated the 80 years of the artist’s life in conjunction
with the year of Brazil in France. The presentation was distinguished
for showing the essence of Rio de Janeiro’s cultural
universe and the Brazilian people through original illustrations
depicting soccer, samba and the Brazilian “mulata.”
As the Vallourec Group celebrated the 5th anniversary of its
presence in Brazil, we were proud to be a part of this great party
and to sponsor, from October 7-31, 2005, Brazil’s rich cultural
aspects. The exhibition was held at “Le Centre Culturel Brésil-
France.”
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V & M TUBES participation to HP/HT sour well
design - Applied Technology Workshop (May 2005)
There was a great attendance to the HPHT ATW with more than 250 people
coming from all the continents, from all type of companies (Major operators
and independents / Main sub-contractors).
ATW CHALLENGE
Numerous operating companies
are pursuing new and
much deeper geologic horizons.
As the well depths increase, the
wellbore construction and well
production operations become
much more challenging
because ultra-high pressures
and high temperatures - HPHT
(Up to 25,000+psi and 450+°F)
will then need to be handled
and/or managed. The industry
is probably able to safely drill
these more extreme wells but
there are some significant technology
gaps that require design
and development. The production tubulars (casing and tubing) will be a major driver
as designs will need to address temperature derating of strength, geometric
complexity to achieve adequate bore and clearances, corrosion and environmental
cracking.
V & M TUBES PARTICIPATED ACTIVELY
TO THIS ATW VIA TWO PRESENTATIONS:
1 - Evolution Of Material Requirements And Products Answer For Critical
Environments (SPE paper 97581)
The development of wells combining high pressure and high temperature
(HPHT) containing hydrogen sulfide (H2S) increased the need for high strength
and sulfide stress cracking (SSC) resistant heavy wall tubular products. On
this basis, a precise combination of steel chemistry and heat treatment
enabled the development and qualification of C110 proprietary grade materials
(VM 110 SS). This grade qualified under fit-for-purpose conditions and
used worlwide, is suitable for most critical sour service applications in heavy
wall casing with premium connections. In addition to the R&D effort, the high
quality of such products is ensured thanks to a dedicated optimized manufacturing
process.
2 - Premium Connection Design, Testing, and Installation for HPHT Sour Wells
(SPE paper 97585)
Drilling and completing wells in HPHT sour environments, magnifies the importance
of having reliable threaded casing and tubing connections. Through
design, proof testing, and installation, VAM premium connections are
meeting these requirements in a number of different ways. The installation
process is also a critical issue in the successful drilling and completion of such
wells. Computer controlled make-ups, low stress or non-marking dies in handling
equipment and even the application of the proper thread compound and
quantity can be critical components in the successful completion of HPHT
sour wells.
People
on the
move...
V & M STAR (VMS) HAS RESTRUCTURED
THE PURCHASING DEPARTMENT
AND WILL RE-ORGANIZE PURCHASING
FUNCTIONS TO EXPAND CAPABILITIES
Jerry Tipton, joined the department
as the General Manager of
Purchasing on November 1, 2005.
Jerry is an experienced purchasing
executive from the investment
casting and titanium manufacturing and
aerospace industry. Jerry will lead the VMS
team and the development of purchasing synergies
with other North American companies. He will
report to Roger Lindgren.
Antoine Rasquin, was appointed
Youngstown’s Purchasing Manager
on October 24, 2005. His focus
will be on cost reduction and increased
value added goods and
services. Antoine holds a Master’s degree in
Industrial Purchasing Management with five
years experience in purchasing, three of those
years as Purchasing Manager for VPS Company,
France. Antoine will report to Jerry Tipton.
Bob Miller has accepted the
position as Houston’s Purchasing
Manager and will transition to his
duties in Houston, December 2005.
Bob will work with Antoine to reorganize
the department, strengthening purchasing
capabilities and report to Jerry Tipton.
VMS CREATES THE CONTROLLING
AND TQM DEPARTMENT.
Bertrand Frischmann, formerly
a Controller in V & M TUBES,
Boulogne, has accepted the position
of Operations Controlling
Manager. He will be based in
Youngstown and will manage cost analysis,
capital investments, and the TQM process for
VMS. He will report to Joel Mastervich.
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23

Together we’ve set
the standard !
- Vallourec Mannesmann Oil & Gas France - RCS Avesnes B 384 627 170 - Illustration : Yann Personnic
is the industry reference for Premium Connections and is available to you, wherever you are.
VAM ® TOP connections and accessories are supported throughout the world by the VAM licensee network managed by VAM Services.
VAM ® TOP is reliable
VAM ® TOP covers all your VAM ® TOP is environment
Used in the highest profile projects technical requirements friendly
throughout the world, VAM ® TOP is considered
by all our customers as BEST in CLASS.
In addition to in-house testing, VAM ® TOP
has successfully passed more than 110
qualification programmes witnessed by our
customers.
From 2 3/8" to 16", VAM ® TOP demonstrates
outstanding performance, capable of
withstanding all aggressive well conditions :
high internal and external pressure, combined
with high tensile and compressive loads as
well as torque, bending and fatigue.
Used with the dope free CLEANWELL ®
option, VAM ® TOP will help you to protect the
environment, increase safety in the field and
reduce your operating costs.
world leader in premium connections
www.vamservices.com