connection 04

T H E V A L L O U R E C O I L & G A S M A G A Z I N E

THE TECH FILESCollapse challengesand technicalsolutions

ON THE MARKETOffshorebusiness:setting course!

SOLUTIONSVAM® FieldService:ever closer

Youngstown, Ohio:The first fullyintegrated U.S. mill

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Publisher: Vallourec Mannesmann Oil & Gas France - 27, avenue du Général Leclerc, 92660 Boulogne Billancourt Cedex - France - Editorial Team: Hassna Belmalek - E-mail: [email protected] - Phone: + 33 1 49 09 35 83 - Fax: + 33 1 49 09 37 13 - Thierry Wolkiewiez - E-mail: [email protected] - Production: Zabriskie.,Paris - Design: LeGrand8, Paris - Photographs: Thierry Truck, Vallourec, VAM® Drilling, VFS, Fotolia, SSPF, Thiago Fernandes or as mentioned otherwise - All rights reserved.

Dear Readers,

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

w w w. c o n n e c t i o n - m a g . c o m w w w. v a m s e r v i c e s . c o m

Youngstown, a quiet town in Ohio, has been strongly anchored in a history of steel making. Since 2002when Vallourec acquired its current steel plant and rolling mill, our goal has been the same as all ofthe Group’s entities: to improve, adapt and serve our domestic market faster and better with premiumproducts and services.

In the recent years this once stagnant part of the country, also known as the ‘rust belt’, has seen arenaissance in manufacturing, largely due to the boom in the oil and gas shale plays. Anticipating thisdemand, Vallourec decided to invest in order to better serve our customers locally. This new plant inYoungstown, Ohio, is presented in detail in this magazine. You will discover the characteristics of thestate of the art facility that will service the needs of all oil and gas shale plays in North America forsmall diameter premium casing.

But the North America market has also seen a strong revival in the Gulf of Mexico, and last year we have increasedthe capacity of our VAM® USA R&D lab in Houston, Texas to an unparalleled size to develop, test, and qualify thereliable premium connections needed for sensitive offshore applications.Whether in the US or across the globe, Vallourec presents a ‘global offshore offer’ ensuring all of our premium productsand services are constantly fine-tuned to satisfy this challenging market, and its extreme environments.

Everywhere in the world, it is clear that timing is a key to success. Thus when creating a new product, service, or anew mill, we seek to anticipate the market expectations, and insure they will be serviced at the right moment. Brazil,China, Middle East, United States… Vallourec endeavors to be present and operational everywhere in the world,whenever it is needed.

Additionally, in order to fulfill our customers’ requirements, nothing replaces the contribution of highly skilledspecialists, such as our VAM® Field Service professionals, or our collapse specialists whose expertise is outlinedwithin this publication.

Enjoy your reading!

Skip Herald, Managing Director OCTG North America

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QUALIFICATION OF VALLOUREC’S NEWFINISHING PLANT IN SAUDI ARABIA Vallourec announces the full qualification of its new finishing plantin Saudi Arabia. Located in Dammam, this unit is dedicated to theheat treatment and threading for the full range of VAM® premiumconnections, with an annual capacity of 100,000 tons. It willmainly supply Saudi Aramco, the Kingdom's national oil company,along with other regional operators. With the qualification of thisplant, Vallourec is reinforcing its presence in the Middle Eastwhere numerous oil and gas projects require high added-valuetubular solutions. The new finishing plant has already received anorder for 20,000 tons of premium connections.

VALLOUREC RENEWS ITS MAIN FRAME AGREEMENT WITH PETROBRAS Vallourec’s Brazilian subsidiary V & M do Brasil andBrazilian national oil company Petrobras have signed a 5-year-contract to supply Petrobras’ operations with premium OCTG products, including seamless pipes, steelgrades and connections using state-of-the art technology.These products will be used for Petrobras’ offshore Oil &Gas exploration and production wells, including the hugereservoir of the pre-salt fields which bring unprecedentedtechnical challenges for their exploitation. With the renewal of this frame agreement Vallourec pursuesits long-term collaboration with Petrobras, dating back to60 years.

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PAGE 6YOUNGSTOWN, OHIO: THE FIRSTFULLY INTEGRATED U.S. MILL

THE TECH FILESPAGE 13COLLAPSE CHALLENGESAND TECHNICAL SOLUTIONS

SOLUTIONSPAGE 17INTEGRATING HOLE CLEANINGSOLUTIONS: IN THE DRILL STRINGTO LOWER DRILLING COSTSPAGE 18VAM® FIELD SERVICE: EVER CLOSER

ON THE MARKETPAGE 21OFFSHORE SAUDI ARABIA: RED SEA DRILLING CAMPAIGNPAGE 22OFFSHORE BUSINESS: SETTING COURSE!PAGE 25DRILLSTRING INNOVATIONS:FOR TOMORROW’S DRILLINGCHALLENGES

EVENTSPAGE 26SHALE GAS WORLD EUROPE

WELL INTEGRITY AND OCTGFOR SPECIAL CONDITIONS APPLICATION SUMMIT

PEOPLEPAGE 27ANNELISE LE GALL:AN ORGANIZED GLOBETROTTER

news

VISIT US AT…IADC World Drilling19-20 June 2013Istanbul, TurkeyBooth #66/67/68

SPE ATCE 201330 September - 2 October 2013New Orleans, Louisiana, USABooth #2739

T H E V A L L O U R E C O I L & G A S M A G A Z I N E # 0 4 - A P R I L 2 0 1 3

BECOMES THE FIRST CONNECTIONQUALIFIED TO ISO 13679 FDIS-2011 CAL-IVIn January 2013, 5.5” 20# VM80-13CR VAM® 21successfully completed a qualification test for Total. The test conducted was in full compliance with ISO 13679 FDIS-2011 CAL-IV, and is the first connection to pass these extremely demanding requirements. The connection was validated to the full pipe VME envelope with 100% compression rating. Since 2002, ISO13679 CAL-IV has been widely recognized in the industry as a reliable testing procedure for premium connections. However, as operators push the boundaries in their wells, so must the testing procedures evolve to meet increasing expectations. The latest version, ISO 13679 FDIS-2011 CAL-IV, is now the highest standard that a premium connectioncan comply with, and is recognized by most major oil companies.

DEVEX15-16 May 2013Aberdeen, Scotland, UKBooth #17

Brasil Offshore11-14 June 2013Macaé, RJ, BrazilBooth #H29

VALLOUREC WEBCASTSpresents:

Impact of the Shale Revolution on premium casing and tubing connections.

Evolution of requirements on casing connections for HP/HT wells.

CONNECT TO WORLD OIL WEBSITE AND VIEW ON DEMAND WEBCASTS Wor ldO i l . com/webcas ts

VAM® CONNECTION DATABASE FOR YOUR WELL DESIGN SOFTWAREA VAM® Connection database is now available for your well designsoftware. It includes our most recent connections and pipe sizesavailable. For more information, please contact your usual Vallourecrepresentative.

focus

Vallourec group subsidiary V & M STAR has eclipsed anumber of project milestonesin the long quest to grow itsposition as the premier domesticsupplier of Oil CountryTubular Goods (OCTG) supporting long term develop-ment of unconventional oil andnatural gas in North America.

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THE FIRST FULLY INTEGRATED U.S. MILL

VALLOUREC OPENS A NEWCHAPTER IN NORTH AMERICABY RAMPING UP OPERATIONSAT YOUNGSTOWN INTEGRATEDFINE QUALITY MILL

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• Technical support and VAM® Field Service;• Network of licensees for accessories and repairs inthe area;

• Customer information through Tubular Essentials;a technical class developed to guide our customersthrough the processes of steel and pipe making, aswell as threading.

In 2007 Vallourec elected that its entire Heat TreatedOCTG product would be sold to API 5CT PSL2 criteriain all its operations worldwide, benefiting our customersfrom this increased safety/quality assurance.To date, no other U.S. domestic supplier of seamless,premium OCTG offers that feature as standard, norhas consolidated all these steel- and pipe-makingcapabilities, and services at one location.The new FQM is designed to run extremely efficientlywith as lean an inventory as possible.Combined with its proximity to V & M STAR’sexisting, complementary facilities, the newstate of the art pipe mill ranks as one of themost efficient seamless tubular facilities inthe U.S., and provides the company with anunmatched speed-to-market capability.In addition, the Youngstown, Ohio, area issituated at the heart of the Marcellus andUtica shale formations, both mature andascending shale plays in the U.S. From a continental perspective, the new mill com-plements company facilities in Houston, Texas, andMuskogee, Oklahoma, positioning Vallourec to betterserve customers pursuing unconventional oil and gasplays across the U.S. and in Canada.

Testimonials

Darryl Smette,Executive VP of Marketing & Mid Stream,Devon Energy Corporation

“We are pleased that Vallourec decided to build a new pipe mill in Ohio which will provide additional opportunity for theindustry in terms of growth and reliability.It will also provide a great opportunity forVallourec to increase its North Americanmarket share in the tubular business.Vallourec continues to provide premiumproducts and the fact that they have a variety of production locations givescompanies such as Devon comfort thatthey will be able to produce the pipe ontime and at the location that we need.”

Steve Tait,President of Pipeco Services

“Vallourec strength from Pipeco’sperspective is: Balance and Consistency.The Vallourec products that are offered to Pipeco allowed us to move into newmarkets that historically had been untapped for us.”

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8 9T H E V A L L O U R E C O I L & G A S M A G A Z I N E # 0 4 - A P R I L 2 0 1 3 T H E V A L L O U R E C O I L & G A S M A G A Z I N E # 0 4 - A P R I L 2 0 1 3

/...

/... Following completion of the $1,050 million Fine QualityMill (FQM) structure in Youngstown, Ohio, in December2011, Vallourec successfully pierced the first shellfrom the new state-of-the-art plant in late June 2012

- only 18 months after breaking ground on the construction project. In October 2012,Vallourec began rolling the first commercialpipe to be manufactured at the facility, settingthe stage for the first production of OCTG todepart the FQM in December, initially boundfor heat-treating and finishing at V & M STAR’sHouston facility.In total, about 700 metric tons of 5½-inch

20# P110EC Range 3 joints with a DWC™/C semi-premium connection, a very popular product in theshale plays, were the first inaugural shipments ofOCTG from the FQM in December. Beginning winter 2012, and throughout 2013, theplant will be carrying out a series of manufacturingqualification programs that will diversify the rangeof products available from the FQM and steadily rampup the volumes of seamless pipe rolling out of the facility.The plant offering will include OCTG, Line Pipe, Tubing,Drill Pipe, and Coupling Stock, in a full range of grades. Among other goals, initial plans call for introducingdomestically manufactured 4½-inch pipe in thespring and starting up the finishing operations insecond quarter 2013. When fully operational aboutyear end, the new FQM will be capable of rolling asmuch as 500,000 metric tons per year of pipe insizes ranging from 2⅜-inch to 7-inch OD. Another benefit to our customers is the significantlyreduced lead time the FQM is expected to generate

in the delivery of premium, seamless OCTG to U.S.well sites. To begin with, Vallourec will be able todomestically supply smaller ODs that were previouslyimported from company mills in Europe and Brazil.In addition, the new FQM will be able to heat-treatand finish the pipe in Youngstown, which will elimi-nate the need to ship tubulars to other locationsbefore delivery to customers. Finishing capabilitieswill include API, semi-premium, and VAM® premiumthreading, as well as on-site third party EMI and UTinspection.

1ST FULLY INTEGRATED U.S. MILLThe decision to construct the FQM in Youngstownwas based upon a few fundamental considerations.First, the availability of a 106 acre parcel of landadjacent to V & M STAR's existing steel mill wasespecially propitious. This configuration enabled theconstruction of the new 1-million square foot mill,creating the only fully integrated steel and pipe millin the U.S. on a single 315-acre site with:• Up to 685,000 metric tons/year of steel-makingcapacity;

• 1 million metric tons/year of pipe mill capacity ofseamless products in ODs ranging from 2⅜-inchto 10¾-inch;

• On-site heat-treating, which is the basis for theproduction of all API 5CT grades, including SourService grades;

• On-site API, semi-premium, and VAM® premiumthreading;

• On-site finishing and third-party inspection basedupon PSL2 criteria;

U.S. MARKET KEY FIGURES

According to the EIA (the US Energy InformationAdministration) the technological advances have created a very promising outlook for shale gas andtight oil development in the U.S.The organization expects domestic production of tight oil to increase by 2.6 million barrels per daybetween 2008 and 2019 thus contributing in greatpart to the 1.5 million barrels per day (b/d) domesticcrude oil production growth between 2012 (6.4 million b/d) and 2014 (7.9 million b/d). All indicators point to the fact the U.S. imports share of liquid fuels will decline due to increased production of tight oil and gas liquids, and greaterfuel efficiency.Additionally, gas production will continue to rise sharply over the next decade, allowing the U.S. to potentially become a net exporter of natural gas inthe early 2020s, provided that Federal authorizationsare granted.

ONEMILLIONmetric tons/year

of pipe mill capacity of seamless products

685,000 metric tons/year of steel-making

capacity

After reheating,the billets

are pierced.

Billets staged in front of rotary hearth furnace.

‘CENTER OF COMPETENCY’Perhaps the most important factor influencing thedecision to build the new pipe mill in Youngstown wasthe presence of experienced steel workers and pipemakers in the region, including many employed at V & M STAR’s existing plants. Because of the avai-lability of a knowledgeable workforce, the companyhas pursued a phased staffing strategy for the newmill that bases hiring upon the status of activitiesoccurring at the site. Training procedures were esta-

blished that take advantage of local workers’manufacturing skill sets. The FQM new hiresdeveloped their proficiency via a combinationof classroom formation and on-the-job trainingby shadowing experienced employees in theexisting mill. At the start of production, mosthad over 6 months experience on the job.With about 20,000 candidates applying forthe positions, competition has been intensefor the 350 permanent, high paying jobs,created when the new small diameter mill isoperating at full capacity, with about 20,000candidates applying for the positions. In com-

bination with more than 1,200 jobs created duringpeak construction of the new mill, the impact of theFQM project on the regional economy has been sub-stantial, estimated by regional Chamber of Commerceofficials at more than $1 billion.“We think Youngstown represents a center of com-petency for us,” Joel C. Mastervich, president andchief operating officer of V & M STAR. “It is whereour workforce has been trained and bred to makepipe. We think that is a very important feature forthe start up our new facilities, and to produce qualityproducts for our customers.”

RIDING A RENAISSANCEVallourec conceived the new FQM in Youngstown specifically to create domestic manufacturing capabi-lity in the smaller sizes of casing and tubing used inhorizontal wells across U.S. shale plays. The spreadof advanced drilling and completion methods inventedfor shale gas to other low-permeability reservoirs isdriving a renaissance in U.S. shale oil production aswell. In a recent quarterly Short-Term Energy Outlook,released January 8, 2013, the U.S. Energy InformationAdministration (EIA) projected that domestic crudeoil production will continue to grow rapidly during thenext few years, with the Bakken formation (Willistonbasin of North Dakota and Montana), the Eagle Fordshale (Western Gulf Basin of South Texas), and thePermian basin in West Texas and New Mexico accoun-ting for the bulk of production growth.With OCTG products manufactured by Vallourec already in the thick of the action in all these keyareas of U.S. oil production growth - as well as in theMarcellus, Utica, Barnett, Fayetteville, Haynesvilleshales, and numerous resource plays in the RockyMountains - the Youngstown pipe mill appears tohave opened for business at a moment even moreopportune than was originally envisioned.

PARTNER IN RECOVERYResurging U.S. oil production is helping improve theU.S. balance of payments by backing out importedpetroleum. EIA expects the share of U.S. oil consumption served by petroleum imports to declineto about 32 percent in 2014, down from 40 percentin 2012 and a high of 60 percent in 2005.

Perhaps more importantly, growing domestic oil andgas output enabled by advanced drilling and completion technologies are fueling a slow-but-steadyeconomic recovery in the U.S. By encouraging plans for constructing new petroche-mical plant capacity, new LNG export terminals, andother industrial facilities like Vallourec’s new FQM.At the same time, the FQM is playing a key role in the industrial renaissance stemming from the oilproduction boom.More than 15 years ago, Vallourec began assemblingthe steel- and pipe-making assets that eventually ledto the creation of V & M STAR and construction ofthe FQM in Youngstown, establishing itself as a majordomestic supplier of seamless pipe in North America.With commencement of operations at the newYoungstown FQM, Vallourec not only has become a major domestic supplier of OCTG, it hasbecome a partner in economic reco-very for a region and anation.

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10 T H E V A L L O U R E C O I L & G A S M A G A Z I N E # 0 4 - A P R I L 2 0 1 3 T H E V A L L O U R E C O I L & G A S M A G A Z I N E # 0 4 - A P R I L 2 0 1 3 11

The business model in the U.S. relies largely ona strong partnership with distributors who sellour products directly to end users. Traditionally,Vallourec would provide plain-end pipe to thosedistributors, who in turn would select what threadto put on our tubes. The North America salesteams developed a new model in 2007, wherebyour local mills produce the pipe, and then threadVAM® connections on it before selling it to ourdistributors. This system provides many advantages to theend users, distributors, and our production faci-lities. End users see greater accountability forproducts and services in an integrated valuechain. Our distributors find the Finished Goodsmodel benefits their stock control, and allowsfor multiple inventory turns. For our mills, themethod optimizes production cycles, improvingtotal system planning. This scenario also createsTotal Package synergies for other Vallourec pro-ducts like Line Pipe, or accessories from ouraffiliate V & M Tube Alloy. This model has beenso successful that it redefined the market, andwas imitated later on by our competitors. The Finished Goods system also contributes posi-tively to the rapidly emerging ‘manufacturingpad drilling’ phenomenon by creating a valuechain from mill to rig. In the past, the pipe needsgenerated by a single rig were staggered overmonths (now only weeks or days!), as the wellreached various milestones. Nowadays the totalpipe demand has increased due to a combinationof elements. First, improved rig efficienciestranslate into more footage drilled per rig eachyear and therefore into more overall pipe usage.Also, new techniques, such as pad drillingimpact volume supply patterns as tubular requi-rement is multiplied by the number of wells ona single pad. Hence the operators’ needs foreach category of products, such as surface, inter-mediate, or production casing, are increasedproportionately, multiplying the total necessaryvolume of pipe that can be subject to peak loadsin drilling cycles. Our mills can expect a changein delivery patterns as techniques are becomingmore complex, but now can be more easily fore-casted. Thanks to our sales teams and theirknowledge of the industry, and nimble adaptationto planned demand in our mills, the V & M USAFinished Goods North America program is posi-tioned to meet the needs of our customers.

Redefiningthe market withFinished Goods

$1BILLIONimpact on the regional economy

Each production step is closely monitored byexperienced operators trained at the legacy

plant.

Equipment and product follow a multi-step quality control protocol.

The new mill rolled itsfirst commercial pipe in October 2012.

On May 18th, 2010, the construction site of the new plant welcomed Barack Obama, the Presidentof the United States, for an official visit.

#04

Collapse phenomenon in OCTG is due to external loadsapplied on the tubular products that have different causes in a well. It can be due to well load cases, suchas cementing operations, full evacuation, and APBpressures, or due to floating formations (mainly salt).Collapse refers to the failure mode of external pressureon a pipe (similarly, burst is the failure mode of internal

pressure loads). By extension in Oil & Gas industry, collapse designates more generally any external loads.Collapse resistance of a tubular depends on mechanicaland geometrical parameters, in particular: D/t ratio,ovality, minimum wall thickness, residual stresses andyield strength. Collapse failure will be initiated in theweaker zone of the tubular.

The collapse resistance is a major concern in some environments, and can be the driving technicalconstraint of well design. This is often seen in deep offshore HP/HT, with Annular Pressure Build up(APB) pressures on the large OD casings, or pre-salt formations with high shear stresses applied by theexternal environment on the casing strings.

1. DEFINITION OF COLLAPSE 1.1 API COLLAPSE FORMULA (ISO10400)API 5CT refers to ISO10400 & API5C3 formulas forcollapse calculation of API 5CT pipes. There are 4 APIformulas defined in these documents, each one appli-cable on a given domain (D/t ratio and grade ranges).You can refer to chapter 8.4 of ISO/TR 10400:2007for the detailed equations.When increasing D/t ratio, the collapse equation thatapply will be in this order:

• Yield Strength Collapse• Plastic Collapse• Transition Collapse• Elastic Collapse

A schematic view of these applicable domains is shownbelow: /...

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the tech files

Collapse challengesand technical solutions


#04

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NEWS FOCUS SOLUTIONS ON THE MARKET EVENTS PEOPLE THE TECH FILES


B / OTHER COLLAPSE CALCU-LATION METHODS IN ISO10400 ANNEXES

COLLAPSE CHALLENGES AND TECHNICAL SOLUTIONS/...

Table showing API 5CT pipes vs. proprietary High Collapse pipes Specification

Example of a mixed string application with a heavy wall section (10 ¾” VAM®

MUST) part to pass through a salt formation, made to the 9 5/8” T&C casing.

One can sort 3 main ways to increase the collapse resistance of a casing string: increase the material yieldstrength, increase wall thickness and/oroptimize the pipe collapse properties(proprietary High Collapse pipes).As detailed in the table below, each solution has advantages and drawbacks,and a compromise is to be found, e.g.between clearance and drift constraints,corrosion resistance, weight and cost ofthe string.

2.1 INCREASE YIELD STRENGTHIncreasing yield strength is not meaningful in certain cases: in the first place it may not be a suitable solution if thereis H2S in the well environment. But also, as explained in the previous chapter, for elastic collapse range, the yieldstrength has no more effect on collapse resistance.

2.2.1 Suitable connection designNaturally, increasing the wall thickness will increasethe collapse resistance. However, the operator has toconsider the clearance and drift constraints of its welldesign.Increasing the wall thickness will either increase theOD or reduce the drift of the pipe. To keep the sameclearance while increasing the OD, the connectiondesign is usually the most suitable parameter to playwith. Typically, a 13 3/8” initial design with threadedand coupled connection (e.g. VAM® TOP) that needsto be switched to a 13 5/8” (88.2# to keep a 12.250drift) will come with a Special Clearance coupling option (e.g. 13 5/8” VAM® TOP NA) or an integral semi-flush design (e.g. VAM® SLIJ-II). If a thicker wall is still required, pipe could be selected with 14” OD(115# special drift is 12.250”) and for clearance

constraint would need to be an integral flush connection(e.g. VAM® BOLT).This case is presented in the graphs below.

2.2.2 Mixed stringFor specific cases where only a section of the full stringneeds High Collapse resistance, like salt formation tobe passed through, a mixed string can be the best candidate to avoid a too heavy string (cost and weightpurpose) and focus only on the zone where the collapseloads are present. VAM® MUST is a design developed mainly for this purpose: it is a flush connection threaded on very thickpipes, whose OD is comparable to the related T&Ccasing string: 7 5/8” 55.3# VAM® MUST could be

mixed with 7” VAM® 21 string (both 6.000” drift andsimilar max OD), or 10 ¾” 109# VAM® MUST with a9 5/8” VAM® 21 (8.500” drift maintained).Below a schematic view of the use of mixed string:

2. SOLUTIONS TO INCREASE THE RESISTANCE

2.2 THICKER WALL SOLUTION (INTEGRALS AND MIXED STRING)

3.1 PRINCIPLEHigh Collapse pipes consist in optimizing productproperties to increase their resistance to externalpressure. The usual influencing parameters that areworked on are shown in the table below.

The High Collapse pipes are usually fully compliantwith API 5CT specifications, in dimensions, manufac-turing and control. They are completed by tighter tole-rances, additional controls and quality checks andenhanced manufacturing rules from the supplier.

The High Collapse shall meet at least 2 conditions:

• Robust and proven High Collapse formula:It is based on R&D expertise, collapse tests, and pro-cess know-how. This calculation should provide a

minimum collapse value guaranteed for the fullvolume produced.

• Manufacturing control and quality:This relies on process expertise, state-of-the-art NDTequipment, and specific manufacturing procedure.The know-how of the supplier is a key factor.

The field record and collapse testing database is alsoa good indicator of the product reliability. Some ope-rators ask for collapse tests in production. This is arecommended practice when the operator has no recordof High Collapse requirement.

3.2 HIGH COLLAPSE MODEL AND CALCULATION (V & M PROPRIETARY)

Since more than 50 years, Vallourec studied the influen-tial parameters of collapse on the pipes they produce.From this analysis and a large collapse test database,Vallourec developed a proprietary collapse calculationmodel, from where they can determine the productionrequirements for a given item to meet a calculated col-lapse resistance. Based on this calculation, Vallourec guarantees on thefull production of a given high collapse item a safetymargin with the claimed collapse rating (which is aminimum “worst case” value).

3. HIGH COLLAPSE GRADES

Comparison of collapse performances with differentintermediate casings

Comparison of collapse performances for different production casing (psi).

For yield strength collapse, the collapse value willdepend mostly on the material yield strength. This con-cerns the low D/t ratios, e.g. tubing sizes or thick pipes.On the opposite, elastic collapse will be function ofpipe geometry mainly, and not yield strength of material.This is typical of very large OD casings.

These equations are known to be conservative.One can note also that operators usually apply a 1.0or 1.1 safety factor to the collapse loads for well designcalculations.

1.2 OTHER COLLAPSE CALCULATIONMETHODS IN ISO 10400 ANNEXES

Annexes of ISO 10400/API 5C3 describe statisticalapproaches based on Collapse tests data statistics

(Annex G) or production data statistics with Klever-Tamano collapse calculation (Annex H).These calculations come along with practical limita-tions:• Annex G requires to do a very large number of collapsetests from samples in production, for each size andgrade combination, per manufacturing plant: this isnot very realistic to apply to each single product of afull catalogue, and it is costly.

• Annex H formula is based on empirical collapse data-base from different OCTG manufacturers (Klever-Tamano equation). Consequently it is not optimizedas it depends on the manufacturer process, equip-ment, and know-how. Also, Annex H would requirecommunicating on process statistics which is sensitivedata for suppliers versus competition.

INTEGRATING HOLE CLEANING SOLUTIONS

IN THE DRILL STRING TOLOWER DRILLING COSTS

Studies have estimated the global industry lossesrelated to stuck pipe and loss circulation to be in theorder of 2 billion US dollars per year. This correspondsto more than twice the total amount spent to buydrill pipe in the first place and represents about 20%of the total NPT losses associated with drilling. Thisalso sets the framework around the challenges andopportunities in which VAM® Drilling continuouslystrives to provide best-in-class drill string solutions. Complex and extended reach drilling (ERD) well profilesare constantly pushing drill pipe manufacturers to redefinedrill pipe performance limits. Focusing on well safetyand hole cleaning efficiency capabilities of the drill string

are not always fully addressed and offered by drill pipemanufacturers. VAM® Drilling, an established industryleader, differentiates by offering hydro-mechanicalhole cleaning products and solutions for drill pipe.

A HOLISTIC APPROACHWhile hole cleaning is generally considered to be wellunderstood, many drillers still have difficulty properlymanaging the entire process. Yet managing this pro-cess with measurements of key performance indicators(KPI) is essential when drilling deviated and horizontalwells. Experience reveals that less-than optimal holecleaning can lead to serious problems. Poor hole quality,especially when the hole is downgraded, can lead tothe loss of the drill string or even the well. Large holesdrilled at high ROPs usually require additional rig timefor cleanups whereas smaller shallow ERD holes haveannular pressure challenges requiring different pipesolutions. Those challenges are best met through aholistic engineered approach to planning. VAM® Drilling’s Hydroclean™ product line is part ofthat holistic approach enabling safer and faster drilling.Use of this technology can improve drilling efficienciesand reduce NPT. Hydroclean™ drill pipe has betterhole cleaning characteristics than standard drill pipein all geometries and hole sizes.

HydrocleanTM

recirculating cuttings into the mud stream.

D R I L L I N G P R O D U C T S

HydrocleanTM

designed for maximum hole cleaning.

#04/...

Regarding High Collapse grades in OCTG, since thereis no API standard for High Collapse manufacturingand values, it is recommended that operators specifythe following when looking for High Collapse product: • The OCTG supplier’s approach and model for HighCollapse calculations

• Explanations on manufacturing procedure and NDTcontrols (the plant shall be equipped and internallyqualified to produce with specific rules)

• Collapse tests during production (e.g. 1 every 200pipes to send to collapse: all the collapse valuesmust be above the claimed rating)

• Qualification of the plant that manufactures HighCollapse grades

• High Collapse product catalogue from the manu-facturer

This will ensure good quality and reliable performanceof the quoted products.

As described in these Tech Files, collapse issues on casing can be managed with different solutions.For the Oil & Gas companies, discussing with premiumOCTG supplier to find the most suitable solution willbring added value to their project. Suppliers likeVallourec can advise on a large catalogue of proprietarygrades and specific connection designs. Fit-for-purpose solutions could also be developed.

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NEWS FOCUS SOLUTIONS ON THE MARKET EVENTS PEOPLE

COLLAPSE CHALLENGES AND TECHNICAL SOLUTIONS

THE TECH FILES


4. CONCLUSION

Product offer• VM HC family: 80 to 150 ksi• VM HCS / HCSS / HCSS-D family: 80 to 125 ksi

VM HC products can provide up to 40% higher collapse than API rating.

Thick wall and integrals orSpecial Clearance coupling• VAM® MUST (7 5/8”, 10 ¾”)• VAM® BOLT (e.g. 14") and VAM® SLIJ-II• VAM® 21 HW (10 ¾”), 13 5/8” VAM TOP-NA

Field records examplesV & M High collapse products are widely used allover the world.• HP/HT in Gulf of Mexico (e.g. 13 5/8” 88.2#and 14” VM 125 HC VAM® SLIJ-II)

• Tarim fields in China (VM 140 HC)• Saudi Arabia (e.g. 9 5/8” VM 100 HCSS, 13 3/8” VM 95 HC)

• Pre-salt in Brazil (11 7/8” and 14” VAM® BOLTwith VM 125 HCSS and VM 110 HCSS material, 10 ¾” VAM® 21 HW)

• VAM® MUST in Netherland salt formations andNorth Sea

3.3 MANUFACTURING PROCEDUREAND QUALITY CONTROLS

Specific production parameters and improved NDTcontrols are required. An internal qualification is performed for each Vallourecmill producing High Collapse, consisting in training,rehearsal production, collapse tests on production sam-ples, and audits.V & M high collapse ratings are guaranteed for all millsthrough the transfer of know-how, harmonization ofbest practices, and compliance with V & M model cal-culation and manufacturing rules.As an integrated manufacturer, from steel making,green pipe, to heat treatment and threading (finishedproduct), Vallourec can optimize and control all thesteps of manufacturing to deliver the best performance.

In average, VM HC pipes will provide +30% collapseresistance guaranteed versus API collapse.

3.4 COLLAPSE TESTINGCollapse testing procedures are given in API 5C3 docu-ment: among other conditions for testing, the minimumlength of the sample is a very critical requirement,explicitly defined in API 5C3. More than 3 000 collapse tests have been performedon V & M high collapse pipes. These tests are done incompliance with API 5C3 collapse test procedure. Collapse tests are regularly done for R&D purpose butalso on production samples. The collapse tests duringproduction are requested by some customers to demon-strate the guaranteed ratings. They are done in-houseor at external labs, at a given frequency (1 every 200pipes for instance) specified by the customer.

NEWS FOCUS THE TECH FILES SOLUTIONS ON THE MARKET EVENTS PEOPLESOLUTIONS

Contacts:[email protected]@vmtubes.de

17T H E V A L L O U R E C O I L & G A S M A G A Z I N E # 0 4 - A P R I L 2 0 1 3

Every year, around 70 000 joints in V & M High collapse material (VM HC, VM HCS, VM HCSS) are run downhole.

Why spend time thinking about drill pipe? Relatively speaking drill pipe is a small expenditure compared to the cost of Non Productive Time (NPT) associated with its use.


“We will go as far as embedding VAM® Field ServiceRepresentatives with our operators to support andsupervise all VAM® connections and operations.”says Director, Patrice Brossard. “Our commitmenthas remained the same since the creation of VAM®

Field Service in USA and UK in 1985: to ensurethat the VAM® Quality is maintained for the life ofthe well. With the support of manufacturing plantsthe offer of full well integrity starts to become a rea-lity.The advice, the expertise, wherever you are... VAM®

Field Service motto could not be clearer: ‘Nobodyknows VAM® like VAM®’. Over a period of almostthirty years VAM® specialists were able to provideworldwide operational support from their bases inAberdeen and Houston however this is not sustai-nable today. Over the years, VAM® Field Service, afundamental component of the global “products +services” offer developed by Vallourec OCTG Division,has strategically set up Services Centers throughoutthe globe to meet the growing local demands.Today VAM® Field Services Centers are located inthe UK, the USA, Canada, Mexico, Brazil, Nigeria,Angola, UAE, Azerbaijan, China and Singapore. Eachof these centers function as independent businessunits with extended responsibilities to regional offices,such as VAM® USA, which manages operations inHouston, San Antonio, Lafayette, and Oklahoma City.

EVER CLOSER TO CUSTOMERSThis expanding and concentrated network is notenough for certain clients. Within the scope of today’slarger projects and / or in particularly challengingconditions, operators demand that VAM® FieldService provide them with accessible full-time onsitetechnicians. “In many regions, it is difficult for ourclients to have casing crews that are up-to-date on

advanced tubular solutions”, Bernard Wyss, CommercialManager, explains. “Having a specialist capable ofproviding assistance at all times is an additionalsecurity and safety element, whose cost is negligible,compared to the potential consequences. This riskbased approach is now a fundamental element ofthe operators' process since recent, well published,major accidents have occurred”.Currently, teams of VAM® Field Service employeesare embedded on assignment with our clients inNorway, the USA, Brazil, Nigeria, Mauritania, AbuDhabi, Oman, Azerbaijan, Vietnam and Australia.

EVER CLOSER WITH SHARED STANDARDSVAM® Field Service has developed a well-balancedand organized structure under the leadership ofPatrice Brossard. “We are supporting all our servicecenters from our headquarters in Boulogne-Billancourt, France”, explains Patrice Brossard.“Alastair Brodie leads the technical team, BernardWyss the commercial processes and Anne Bertrandthe quality management system”. Anne Bertrand,QHSE Manager advises: “Even if our local servicecenters remain autonomous, this organizationalstructure allows us to ensure the general coordinationof our common services and shared standards at ourspecified expectation levels. New services develop-ment, methodology, procedures, quality control,competencies... this is to support all OCTG productsoffered by Vallourec.” VAM® Field Service experts have a shared responsi-bility in both their responsiveness and availability.They are in the field 365 days a year and frequentlytravel to the most remote corners of the world. Ourexperts are accustomed to receiving last minuteafternoon calls. As an example, a request for serviceat 13:00, helicopters check in at 16:00 and at the

18 19

NEWS FOCUS THE TECH FILES SOLUTIONS ON THE MARKET EVENTS PEOPLESOLUTIONS


VAM® FIELD SERVICE

EVER CLOSERVallourecs’ tubular solution confirms it: the technical sophistication of products onrigs today is expanding as the operational complexity of petroleum exploration andproduction increases. As operators go further and deeper, VAM® Field Service (VFS)is always available.

11 service Centres 200+ employees 40,000 service days in 2012 300 customers supported in 201249 countries worked in 2012

VAM® Field Servicein some numbers...

/...Running pipe on training rig during VAM® Academy in Aberdeen.

Patrice Brossard, Director and Bernard Wyss,Commercial Managerof VAM® Field Service.

RIG SITE SERVICES- Deck inspection

- Make-up supervision

- Validation of make-up graphs

- Pipe pulling-out-supervision

ON-SHORE SERVICES- Rig-ready / rig-return pipe inspection (at customer or VAM® facilities)

- Assembly make-up supervision of pup joints, crossovers, packers, safety valves, hangers, etc

- Consultancy and training

- VAM® QA/QC manufacturing services

- On site dedicated VAM® Field Service Experts

VAM® Field Service range of services…

20

SOLUTIONS


SOLUTIONS

rig by 18:00 to start working immediately. It justtakes a few minutes for them to pack bags and leavehome.

EVER CLOSER WITH EXPERT TRAININGBased on the increasing demands and sophisticationof our products, the VAM® Field Service team places

a top priority on continual educationalproficiency. “In October 2012, we createdthe VAM® Field Service Academy to sup-port this need”, shares Alastair Brodie,Senior Technical Manager. “First and foremost is our prioritytowards our new recruits through boththeoretical and practical applicationtraining courses. This initial training of3-6 months offers an essential intro-duction to the processes; however, con-tinuous education is also a priority sothat the teams remain in tune with theconstantly changing and evolving market-place. This allows us to provide indis-pensable ongoing training resulting from

the continuous development of operational drillingtechniques as well as Vallourec’s tubular solutions.

Ensuring the proper use of CLEANWELL®, our dope-free product, or the latest generation of connectionssuch as VAM® BOLT, requires a solid knowledge basethat is provided by our expert technical team withthe support of VAM® R&D.”The nearly 200 worldwide VAM® Field Service staffand specialists are evaluated for operational profi-ciency at least once every year. This training effortrepresents an overall investment of more than 2 millionUSD, annually. It is also important to emphasizethat training in itself is not the end of the process.The technicians, who complete the VAM® FieldService Academy, are assessed according to reco-gnized industry standards following the methodologyof OPITO*. Organization, careful tracking of market develop-ments, investments, high-level and continuous training... VAM® Field Service does it all to exceedthe expectations and goals of its clients. Therefore,it should come as no surprise following a survey ofthe last 2000 jobs that 97% of our clients are com-pletely satisfied and ready to repeat the experience.

* Oil and Gas industry's focal point for skills, learning and workforce development.

/...

A VAM® technician repairing VAM® connections.


SOLUTIONSON THE MARKET

The project comprises of 3 offshore exploration wellsin shallow water and 3 in deep water (seabed at 1.000 m). For these demanding deep water explo-ratory wells, the operator has given preference tothose companies, such as Vallourec, which haveextensive experience in the Gulf of Mexico or in theNorth Sea. In view of the harsh drilling environment, it is not anuncommon practice for operating companies to takea conservative approach especially in deep offshoreapplications, where a principal driver is to specifythe most robust and field proven designs includingthe connections. It was in this context that Vallourecwas selected by the client as a preferred supplier,given its many worldwide references and expertisein these most demanding of deep offshore projects.The VAM® family, which is considered a key branddifferentiator for Vallourec, has actively promoted itshigh performance, new generation VAM® 21 connec-

tion in Saudi Arabia for this project. A specific qua-lification test was performed to a severe test protocolthat was successfully completed in 2010.

HAND IN HANDVallourec worked very closely with the operator tospecify its products for this project. For many years,both companies have worked hand in hand throughregular face to face meetings, supported by presen-tations, technical seminars as well as regular day-to-day exchanges that have paved the way for this suc-cess. The client’s requirement is to deliver a projectsafely, on time, on budget with the highest possiblequality standards. Vallourec was clearly delighted tooffer its support to one of its strategic partners inthis new technologically challenging project. Thisopportunity has enabled Vallourec to once again bringits experience, know-how and reputation for deliveringhigh quality products and services.

To address the growing domestic energy needs in Saudi Arabia, drilling for non-associated gasis becoming increasingly important. In order to diversify its source of supply, a leading oil companyin Saudi Arabia is actively exploring the Red Sea basin in the North West of the country, in theTabuk province, where Vallourec has been selected as preferred supplier in this project.

OFFSHORE SAUDI ARABIA: RED SEA DRILLING CAMPAIGNThe latest example of a long-term partnership...

Alastair Brodie,Senior Technical Manager of VAM®

Field Service.

© Fotolia

While the Group’s technical and sales teams act independently, in their respective markets, they areall committed to a clearly defined global Offshorestrategy.

VALUE AT EVERY LEVELThe other common denominator of Vallourec’s off-shore products and various services is their increasedadded value. "This is a world where the slightest issuecan have very serious consequences on human, ecological, and financial factors”, ChristophePaillusseau explains. “Conducting repair or replace-ment operations in thousands of meters of water is extremely difficult and costly. In addition to thestresses encountered inside the well, our engineeredproducts are capable of withstanding extremely challenging deepwater operating conditions, hydro-static pressures and corrosion.” This in itself is notenough: they must also add to project profitabilityand increased revenue to our client’s bottom line.This is the case with the VAM® 21 downhole casingsand tubings, whose design facilitates the self-alignment of male and female connections duringstabbing operations on the rig floor, or the latest automated Saturnax 9 pipeline welding solutionsdeveloped by our subsidiary Serimax. The Offshoreenvironment is both innovative and profit driven; it is especially important for Vallourec because of its strategic position in the market.Reliability is the main driver for an operator


OFFSHORE BUSINESS

The offshore oil and gas industry is a dynamicenvironment where daring is rivaled only bythe risk. In this intense market, there is onlyroom for the highest performing and mostreliable partners. A recent survey has shownthat Vallourec is involved in over 75% of theworldwide offshore deepwater (1) projects. The teams that are involved in all of theGroup’s oil and gas exploration activities arenot resting on their achievements. They arefully aware of their responsibilities and theyare constantly challenging themselves to offer"a better value” for their clients.

Vallourec pursues its long-termcollaboration with Petrobras in Brazil

Vallourec’s Brazilian subsidiary V & M do BRASIL (VMB) and Petrobrashave signed a 5-year-contract to supply Petrobras’ operations with premium OCTG products, including seamless pipes, steel grades andconnections using state-of-the art technology. These products will beused for Petrobras’ offshore Oil & Gas exploration and production wells,including the huge reservoir of the pre-salt fields. João Perez, General Manager of OCTG at VMB declared:

“ A customer-oriented initiative with our key-accountteam, working closely with our R&D teams to proposea tailored solution and maintain our Premium market share in this increasing Offshore market.Reliability, Innovation and long-term commitmentwere key for VMB to become Petrobras first choice for the foreseeable future.Our commercial offer was aligned with Petrobrastechnical requests to deal with its current and futurechallenges in the E&P activities, enhancing and standardizing our product portfolio with the mostadvanced premium products when 22 new productswere developed in a single year. Moreover, our local presence was key to supportPetrobras restrictions in the local content regulation which is a very important issue in ourcountry.Signing this 5-year-contract after a two year exhausting preparation and alignments with our maincustomer was an important award in this emergingcompetitive market.”

HUGE TECHNICAL CHALLENGES AHEADThe Brazilian pre-salt fields combine several additional challengesbesides the salt layer itself: well depths up to 7,000 meters, ultradeepwater conditions with up to 2,000 meters between surface and seabed, acid corrosion caused by H2S and CO2 contaminants,temperatures and pressures tending toward High Pressure/HighTemperature conditions in certain areas. Associating all these parameterstogether has an important impact on the exploration models, and onthe requirements for OCTG material able to withstand such a combi-nation of mechanical, corrosive and thermal constraints. Vallourec,through its sustained innovation capability, is able to meet all thesetechnological needs and will supply Petrobras with the most advancedseamless pipes for sour service using high alloyed material as well asthe latest and unequalled advanced premium connection VAM® 21.Anticipating new demands for the pre-salt and growing challenges inthe still unexplored equatorial margins, Vallourec will open in 2013 anew R&D Center in the State of Rio de Janeiro, located next to Petrobras’research center CENPES in the Technological Park of Rio Janeiro, and will expand its current R&D facilities located in Belo Horizonte,Minas Gerais.

Sharing knowledge, technology, experiences, marketingand commercial processes... these are all key components of the Vallourec strategy that translatesinto specific initiatives carried out by all of itsdivisions. This is especially evident within thecore business branch that encompasses all ofthe Group’s activities that are dedicatedto oil and gas exploration and produc-tion. “In particular with regards to off-shore applications,” shares ChristophePaillusseau, Global Solution Managerin the Pipe Project division (2), “theseapplications are rapidly-deve-loping and require premiumsolutions, now, more than ever.Currently, sales related to off-shore market represents a consi-derable share of our company’srevenues.”

A COMPLETE PACKAGEThe Offshore market representssuch high technological and finan-cial stakes that it has been seg-mented into individual businesslines: drilling, subsea productionsystems (SPS), subsea umbili-cals, risers & flowlines (SURF),and floating production sto-rage and off-loading platforms

FPU(3)/FPSO(4). It is a challenge to be both an expertin drill pipes, umbilicals and pipeline welding… Over the past several years, the range of Vallourec’s

offshore solutions has expanded, mainly drivenby the OCTG and line pipe sectors, in particularwith the launching of VAM® Drilling, a worldwide

drill pipe leader, as well as the acquisitionof Serimax, the market leader for pipelinewelding services. In addition, Vallourechas also demonstrated its innovativecapacity with the development of superduplex steel tubes specifically for theumbilicals: initial production is expectedby 2014. In addition, a complete line of

tubular accessories is being developedfor different markets and service lines.The Vallourec portfolio has evolvedinto a highly segmented market thatnow covers numerous offshore appli-cations: drill strings, OCTG – downholetubings and casings, risers, umbilicals,flowlines, PLEM, PLET, jumpers, top-sides for FPSO/FLNG/ floating units,riser tensioners, jacket leg bracings,off-shore cranes…

22 T H E V A L L O U R E C O I L & G A S M A G A Z I N E # 0 4 - A P R I L 2 0 1 3

1 - Deepwater :500-1500m ofwater depth.Beyond 1500 =ultra-deepwater.

2 - The Pipe Projectdivision servesthe offshore and onshoreconstructionmarkets linkedto Oil & Gas,with the provi-sion of subsealinepipe andrelated accesso-ries, superduplex steeltubes for umbili-cals as well aswelding contrac-ting servicesthroughSerimax.

3 - FPU = FloatingProduction Unit.

4 - FPSO = FloatingProduction Storage andOffloading. /...

Umbilicals are used to control subsea equipment from a surface facility (fluid, power, data).

SETTING COURSE!


24 25



when choosing partners to support a multi-billiondollar project. To maintain a leadership position italso means having the resources necessary to parti-cipate in market development: skills, technologies,manufacturing processes, production and investmentcapacities…

A COMMITTED STRATEGYFor many years, Vallourec has successfully built itsreputation of reliable partner for the offshore sectorand delivered its products and services without anyincident. As an example, we have partnered on projects with Total in the North Sea and offshoreWest Africa, with BP in the Gulf of Mexico, as wellas with Petrobras (see page 23) in deep-water offshore Brazil, where the Group alsorecently built its largest pipe fully inte-grated production unit, from mining tofinishing, through rolling… that is almostexclusively dedicated to the oil and gasmarket. Vallourec is also present in all theworld’s largest oil hubs: Paris - often

forgotten - Houston, Rio, Dubai, Aberdeen, Singapore,Perth... There, Vallourec’s teams not only work withoperators but also with the numerous EPCs such asTechnip and Subsea7, or regional contractors suchas Swiber and Seatrucks.

“We are very aware of our involvement in offshoreprojects,” says Christophe Paillusseau. “We knowthat innovation will be one of the developmental keysin the most ambitious initiatives, for example, theultra-deepwater sector. Therefore, we are workingtowards developing products and solutions to go evendeeper, producing hydrocarbons in corrosive andincreasingly challenging environments.”

/...

S-Lay welding operations by Serimax.

Vallourec secured 1000 tons of topsides piping for Prelude FLNG.

Spooling operation of a pipeline.

DRILLSTRING INNOVATIONS

But pushing the drilling envelope farther requires sub-stantial upfront planning to manage many critical para-meters including equivalent circulating density (ECD)management, hole-cleaning, casing wear, torque anddrag, and critical tension loads at total depth (TD). Asthese parameters push product technology forward,drill string manufacturers will need to solidify theirposition as true partners in helping to design and pro-vide the solutions needed to drill farther, faster.But while drillers today already expect safe, reliableand efficient drill string solutions, they are also callingfor cost-effectiveness throughout the product lifecycle.This means that manufacturers cannot simply rely onnew product technologies to succeed, butmust also offer efficient and user-friendlysolutions. A perfect example of this is thedrill pipe connections that must boastsuperior performance values and ease ofuse but with lower repair rates and costs.

GREATER EFFICIENCY AND COST SAVINGSAnd the offshore environment is not theonly place where drilling is impacting pro-duct development. The U.S. unconventionalmarket, for example, has had a tremendousimpact on the expectations drillers have interms of drill pipe life-cycle costs. The reality of drilling unconventional well profiles is that, in most cases, the life ofdrill pipe is significantly reduced due topremature midsection tube wear, handlingdamage to double shoulder connectionsleading to excessive repair rates. All of which is asso-ciated with high repair costs and shortened productlife-spans. Vallourec realized early on that the uncon-ventional drilling market was going to require productsdelivering greater efficiency and cost savings, all thewhile addressing issues such as midsection tube wear.The bottom line is that our products have to adapt andgrow with the market. For a shale well in Poland, for

example, we designed a custom solution that allowedfor drilling and coring using the same drill string,eliminating the time and cost multiple changeover trips.So where can we expect the most exciting productevolutions in the coming years? Clearly the growingoffshore market will continue to set new challengesfor landing strings and drill pipe risers. Vallourec isalso seeing clear demand for higher strength steelgrade solutions for extended reach wells. These gradeshave specific steel chemistries and heat treatmentsthat make drilling farther possible without increasingthe weight of the drill string. We have already introduced proprietary steel grades

for Arctic drilling that combine high strength with hightoughness guaranteed at the extreme low temperatureof -60°C (-76°F). Additionally, a complete drill stringsolution for the sourest wells will make drilling in theseenvironments safer and more efficient.

FOR TOMORROW’SDRILLING CHALLENGES

Extended reach wells have already achieved remarkable milestones in terms of depthand reach. Wells like ExxonMobil’s OP-11 with a total measured depth of 40,502 feetand a horizontal departure of 37,648 feet are trendsetters. Ultra-deepwater wells witha total depth of up to 50,000 feet are soon to be the next frontier conquered.

D R I L L I N G P R O D U C T S

Contact: [email protected]

High performancedouble shoulder

connection VAM® Express.

Advanced technology for complex wells.

26 27

SOLUTIONSEVENTS


Annelise Le Gall, a young mechanical engineer, is a team member of eight VAM®

Services auditors in charge of annually verifying the service quality providedby some 200 VAM® licensees throughout the world. A task which Annelise pursueswith authority and thoughtfulness to ensure that the performance of the VAM®

connections remains at the highest level...

Never tell Annelise Le Gall that she is anadventurer, because in her mind she thinksthe opposite... "I do everything I can to avoidrisks, explains this 30-year old who has beenan auditor at VAM® Services since 2010. Outof respect for my contacts, and for reasonsof security, I cannot afford to get lost, fall ill,or let anything happen to me. So that I maybe completely available and on time for mymeetings, I carefully prepare my trips. Myseven colleagues and I are fully trained andwe have the assistance of our internal serviceswho, for example, advise us regarding the cur-rent sanitary levels and security risks at eachand every destination. Instead of calling mean adventurer, let’s just say that I am an orga-nized globetrotter." VAM® polo shirts, pants, safety shoes, firstaid kit... Even if it is not glamorous, Annelise’straveling luggage is perfectly suited for theworkshops in which she dedicates most ofher time. The only thing that varies is the sizeof her luggage and that is dependent on theweather conditions where she will be traveling.Last year she spent 105 days traveling, halfof her annual working time, and visited someforty licensees. "My trips rarely exceed twoconsecutive weeks, and I spend one or twodays with all the licensees during an audit,Annelise shares. The tasks take a bit longerwhen this involves, as an example, training a

new network member on our quality systemor qualifying a licensee for a new connection." At the conclusion of an audit, Annelise orga-nizes an evaluation meeting in which a scoreis presented to the licensee. "This is also thetime to mutually address the corrective mea-sures which allows our partners to improveperformance, says Annelise. We are not hereto impose sanctions; the goal is to progresstogether."Along with being good-natured and a focusedlistener, Annelise also knows how to exercisethe proper authority to place a licensee underreview or to even withdraw their qualificationson a conditional basis. As an accredited pro-fessional in equipment inspection and veri-fication, for her there is no ambiguity: a con-nection is within the tolerances, or it is not.She follows a similar process when she indul-ges in her passion for playing the “Frenchhorn” in an orchestra in Northern France: anote is right, or it is not...

“The Shale Revolution” was the name of the presentation givenby Vallourec – in partnership with Encana – during the “ShaleGas World Europe 2012″ event, which took place in Warsaw,Poland on November 27-29 last year. For the Vallourec repre-sentatives in attendance, this year’s event was significant, asmuch in terms of organization, frequency and quality of thepresentations. The Group will definitely be participating nextyear in this now major event and will likely have a booth.

VALLOUREC AND SHALE PLAYSVallourec’s involvement in the remarkable development of oil andgas shale plays has been manifested through a variety of initiatives.The expectations of the operators have been met with the develop-ment of specific products responding to the demands of this unique application, in terms of tension, torque, bending capabilityand fatigue. In a matter of months our R&D facilities was able todesign the VAM® SG. VAM® SG is a semi-flush premium connectionavailable in 4”1/2 – 5”1/2 for the full string length with an enhancedtorque and tension resistance (90%) compare to current semi-flushand tested per CAL II ISO 13679 – 2011.The company also has developed closer relationships with largeshale plays operators on the other side of the Atlantic. To anticipate

their needs, it has built a brand-new plant in Youngstown, Ohio,which has the capacity to meet domestic demand for smaller diameter pipe used in the shale plays. The first pipe has been produced and will be shipped in January 2013. Commercial production will ramp up through the year 2013, and will be complemented with heat treatment and testing, threading, storage,and services.In Europe, which is also in the midst of the shale revolution,Vallourec enjoys the benefits of the premium products, experience in the U.S., with the same strategy of remaining close to our customers.We will be pleased to welcome you at our stand during the 4th annualShale Gas World Europe conference on November 27-28, 2013 inPoland.

On March 7 and 8, the “Well Integrity and OCTG for specialconditions application Summit” undertaken by Vallourec washeld with great success in Jiangsu Changzhou.Sponsored by Petroleum Tubular Goods Committee of ChinesePetroleum Society, the two-day summit provided a special focuson finding an economic and technical solution to improve ourcustomers’ safety in their exploration and development in China.Topics such as well integrity, shale gas resources, the design of

high pressure and high temperature and ISO13679 new versionstandard were on the table.The summit was attended by experts and technical directors,from Vallourec and outside our Group, such as Singapore StuartWright Company or the CNPC research institute of tubular goods.More than 60 delegates attended this conference from CNPC,Sinopec, CNOOC, Yanchang, BG, Husky and Total. Eventually,the delegates were pleased to visit the VAM Changzhou plant.

WELL INTEGRITY AND OCTGFOR SPECIAL CONDITIONS APPLICATION SUMMIT

Experts and technical leadersfrom operators and Vallourec.

PEOPLEANNELISE LE GALL

AN ORGANIZEDGLOBETROTTER

The goal ofan audit is to makesure that a licenseeis capable of manufacturing,inspecting, and supplying aconnection that isconsidered perfectlycompliant by Vallourec.”

Habit is theenemy of an audit.One must keep a fresh outlook onanything one sees.”

‘‘

‘‘

SHALE GAS WORLD EUROPE

connection 04

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