THE END OF VALLOUREC DRILLING PRODUCTS

January 08, 2018

Vallourec Drilling Product, the French manufacturer of high quality pipes for the oil industry based in Boulogne-Billancourt, is one of the last big companies that could not survive the dramatic and persistent fall of the crude oil prices. Since 2013, the company has recorded colossal and regular losses that are worrying, up to € 63 million in 2015-2016. In December 2017, the company advised that, after negotiations run with the US oil services company National Oilwell Varco (NOV), it has received a binding offer for the purchase of Vallourec Drilling Products business, for a total cash amount of US$63 million.
This offer covers all of Vallourec’s industrial activities related to Vallourec Drilling Products in North America, in the Middle East, in the Netherlands, and in France (one plant in Aulnoye-Aymeries, Hauts de France).
The French “Drilling Products” sites in Cosne sur Loire (Bourgogne-Franche Comté) and in Tarbes (Occitanie) would undergo an independent divestment process at the same time.
Vallourec Drilling Products, with an overall workforce of around 600 employees, offers a wide range of products including drill pipes, drilling accessories and other tubular products.
NOV is a US company and leading provider of oil services with a global presence, offering the technology, equipment and services needed for drilling, oil and gas well completion, and hydrocarbon production.
This project further supports Vallourec’s Transformation Plan aiming at strengthening its competitiveness on its strategic markets. In accordance with the applicable regulations, this project is conditional upon the approval of governance structures and consultation with the relevant staff representative bodies.
The Group also offers a wide range of tubes for petrochemical installations (refineries), for mechanical engineering applications (hydraulic cylinders, machine tools, etc.), for the automotive industry, for construction (stadiums, other complex buildings and structures) and for various other industrial sectors. (Source: Vallourec)