A new chapter in our success story in Algeria
24/10/2018 Boulogne 

Vallourec will deliver 32,000 tons of onshore pipeline to our new Algerian customer Sonatrach-Agip consortium (GSA)1. 

These 16" API grade carbon steel seamless tubes with 3 LPP2 anti-corrosion coating will be produced entirely on our Rath Plug site. 

A dynamic context

GSA is willing to value an excess gas production that is not yet exploited. 

They will use our pipes for the construction of a 188 km pipeline linking the Bir Rebaa North hydrocarbon field to the Menzel Ledjmet Est gas treatment plant in the Berkine Basin, next to the Algerian-Tunisian border. 

This project was part of the agreements signed in April 2018 with the Sonatrach Group and its Italian partner ENI that also included an ambitious exploration and development program, and could be followed by other achievements for our teams.

A longstanding relationship with our client GSA 

Many elements were key in this contract, especially due to the very short-time delivery requested by GSA, part of a “fast track” project concept, to allow the construction of this pipeline by early 2020.

First, our ability to quickly meet GSA expectations was critical. To ensure pipes on-time delivery, we managed this order in a "fast track" mode, from the tender to the execution of the contract which began in September 2018.

This success also relied on the excellent feedback from our previous projects delivered to Sonatrach from 2015 to 2017 where the delivery of 54,000 tons of line pipes, without any claim from the customer, reinforced our reputation of a being reliable supplier.

Finally, over the years the Group has forged a close relationship with Sonatrach, especially within the OCTG business.

Our experience associated with this long history contributed to building a confident relationship with the GSA consortium enabling to differentiate from our competitors.

And a remarkable cooperation of all our sales forces! 

The challenges of this order are twofold: 

First, it allows us to consolidate our position as a line pipe supplier to Sonatrach, one of our longstanding customers in OCTG and Line Pipe solutions; 

And on the other hand, it is an excellent opportunity to build a long-lasting relationship with our ENI Key Account and to boost our cooperation.

Negotiations with GSA in Hassi Messaoud were led at the forefront by Europe/Africa Line Pipe sales teams which had previously negotiated the Line Pipe contracts with Sonatrach.

Philippe Laurent, Sales Director for Line Pipe, Europe / Africa

"This contract is the result of the remarkable cooperation between the Line Pipe and OCTG sales teams, which have allowed us to enrich our knowledge of the Sonatrach Group and perfect our commercial approach with this call for tender."

Parallel to this, our local teams, notably our office in Algeria, were responsible for maintaining a privileged relationship with GSA, thus contributing to reinforce the proximity with our client.

Our ENI Key Account Manager, 

Attilio Tafuri, 

who has been able to develop his in-depth knowledge of the Italian oil company, says: 

"This contract is very important because we managed to guarantee a very short delivery time to ENI, which is one of the major challenges of our customer for this project.  

The respectable execution of this order will allow us to be recognized as a leading supplier for the most demanding projects worldwide. This is a very good example of close cooperation between the Key Account Manager and our sales force." 

The success of this project relies on teams’ commitment, successes of previous projects with Sonatrach in OCTG and Line Pipe and our new privileged relationship with GSA. 

This will certainly be key for future opportunities, in Algeria with Sonatrach or in other countries where ENI operates.

1 GSA (Sonatrach Agip Group) is a Sonatrach - ENI joint venture created in 1991 following the discovery of the Bir Rebaa Nord (BRN) hydrocarbon field in Algeria.  

The consortium is based in Hassi Messaoud. 

2 3LPP is a polypropylene coating which offers great protection during the transport and installation of the tubes and which also guarantees a high level of resistance to corrosion and mechanical resistance. It will be achieved by our Europipe supplier in Mülheim for this order.

A great reward for our teams demonstrating that commercial Excellence and customer focus are always paying off!