Vallourec Secures Key Line Pipe Contract From Allseas, Offshore Brazil

Vallourec S.A. VLOWY, a French tubular solution provider to the global energy market, has clinched a major contract to supply line pipes for operations at Petrobras’ Búzios field offshore Brazil. Allseas, a global contractor for the offshore energy market, awarded Vallourec the contract for the Búzios 10 offshore project.

Scope of the Contract

Per the terms of the contract, Vallourec is expected to supply 18,000 tons of seamless, carbon steel line pipes of premium quality suited for high-pressure subsea environments. The line pipes would be utilized for risers and flowlines at the Búzios 10 offshore project. The contract also includes an option for supplying another 5,000 tons of these line pipes.

The scope of the contract also covers VLOWY’s Pipe Navigator solution — an advanced digital portal that stores information in a centralized manner. The portal provides instant access to updated data associated with contract documentation and data & analysis of every relevant detail related to its line pipe projects.

The seamless carbon steel line pipes for this project will be manufactured at Vallourec’s facility in Jeceaba in Minas Gerais, Brazil. Production at the facility in Minas Gerais would ensure that the company utilizes local resources to support the local economy. The decision is also expected to reduce the carbon footprint involved with the production of the line pipes.

Vallourec Deepens Ties With Brazil

The Búzios field is one of the largest deepwater oilfields in the world and is central to Petrobras’ oil and gas operations offshore Brazil. Allseas secured the contract for the design, procurement, construction, and installation of subsea components at the Búzios 10 field, in February 2025. It will begin working on the project in the third quarter of 2026.

Vallourec mentioned that the latest contract strengthens its foothold in Brazil, which is a key market for offshore oil and gas projects. The contract also highlights its ability to offer advanced tubular solutions, produced locally in Brazil.

VLOWY’s Zacks Rank and Key Picks

VLOWY currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Archrock Inc. AROC, Nine Energy Service NINE and Kinder Morgan, Inc. KMI. While Archrock currently sports a Zacks Rank #1 (Strong Buy), Nine Energy Service and Kinder Morgan carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.

Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. It operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the need for NINE’s services is anticipated to increase, which should position the company for growth in the long run.

Kinder Morgan is a leading North American midstream player with a stable and resilient business model, largely driven by take-or-pay contracts. KMI’s stable business model shields it from commodity price volatility, resulting in predictable earnings and facilitating reliable capital returns to its shareholders. In the first quarter of 2025, Kinder Morgan increased its quarterly cash dividend to 29.25 cents, reflecting an approximately 2% increase from the prior-year level. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research