Commencement of VAM®BRN Commercial Operation in Brunei

Nippon Steel & Sumitomo Metal Corporation (“NSSMC”) and Sumitomo Corporation (“Sumitomo”) hereby announces that VAM® BRN Sdn Bhd (“VAM® BRN”), a joint venture set up in Brunei by NSSMC, Sumitomo, and Vallourec Tubes S.A.S., has commenced its commercial Operation as of  November 2016. VAM®BRN will provide OCTG pipe threading services in Brunei, with its threading capacity of 18,000 tons per year.
 
For more than 40 years, NSSMC and Sumitomo have been supplying seamless OCTG pipes to Brunei Shell Petroleum Co Sdn (“BSP”), a leading upstream oil and natural gas company in Brunei for drilling operations. Commencement of VAM® BRN commercial Operation will contribute to the development of local employment, and knowledge transfer from Japan to Brunei. In conjunction with this, from January 2017, Sumitomo will commence its Supply Chain Management Service with its own stock yard adjacent to VAM®BRN.
 
As drilling conditions are becoming increasingly harsh, the demand for premium connections for seamless OCTG pipes for crude oil and natural gas industry is on the rise. Commencement of VAM®BRN commercial Operation will develop a system for stable supplies of seamless OCTG pipes.
 
*1 VAM® is a registered trademark of Vallourec Oil and Gas France for premium connections threaded on seamless pipes which are being jointly developed by NSSMC and Vallourec Oil and Gas France

 

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