Vallourec will supply approximately 130 km of rigid risers and flowlines — more than 15,000 t of sour service carbon steel seamless line pipe — to Subsea7 for the Sepia 2 project, Petrobras' latest pre-salt development in ultra-deep waters of the Santos Basin, offshore Brazil.

The tubular maker said it secured the project's entire carbon steel line pipe and external coating supply scope through a single integrated offer. The award follows the engineering, procurement, construction and installation (EPCI) contract that Subsea7 recently secured from Petrobras for the same project.

Vallourec will manufacture the pipe at its Jeceaba mill in Minas Gerais, Brazil. Thermal insulation coating will be applied at the company's Vallourec Coating Solutions plant in Serra, in the state of Espírito Santo. Both assets sit inside Vallourec's fully integrated Brazilian industrial footprint, which the company positions as a competitive advantage for pre-salt work.

What is Sepia 2?

The Sepia 2 project lies roughly 280 km from the Brazilian coast in the pre-salt Santos Basin, in water depths of about 2,170 m. Petrobras leads the consortium developing the field. The scheme comprises 15 wells and an export pipeline tied to a new floating production, storage and offloading (FPSO) vessel.

For Vallourec, the scope covers:

• Approximately 130 km of rigid risers and flowlines
• More than 15,000 t of sour service carbon steel line pipe
• Thermal insulation coating applied at the Serra plant in Espírito Santo
• Pipe production at the Jeceaba mill in Minas Gerais

Sour service grades point to the hydrogen sulphide-bearing fluids typical of Santos Basin pre-salt reservoirs, where CO2 and H2S content drives specification requirements well above those of conventional offshore developments.

What did Vallourec say?

Philippe Guillemot, Chairman of the Board of Directors and CEO of the Vallourec Group, tied the award directly to the company's integrated pipe-and-coating model.

"This contract illustrates the strength of Vallourec's integrated offering, combining premium seamless line pipe and advanced thermal insulation coating," Guillemot said. "It confirms our position as a partner of choice for the most demanding pre-salt developments and showcases the excellence of our fully integrated Brazilian industrial footprint, from our Jeceaba mill to our Serra coating plant."

He added: "I thank Subsea7 and Petrobras for this new mark of confidence, which rewards the dedication of our teams."

Why the local footprint matters

The contract structure rewards Vallourec's in-country manufacturing base. Petrobras and its EPCI contractors have historically favoured local content in pre-salt awards, and Sepia 2 follows that pattern: both the steel pipe and the insulation coating will come from Brazilian facilities, shortening the logistics chain for a project installed nearly 300 km offshore in water depths beyond 2,100 m.

Thermal insulation coating is a critical specification for pre-salt flowlines, where long tie-backs and high reservoir temperatures demand pipe-in-pipe or wet insulation systems to manage hydrate formation and maintain flow assurance over field life.

The award extends Vallourec's run in the Santos Basin pre-salt, where the company has supplied tubulars and coating across multiple Petrobras floating production schemes. Subsea7's EPCI win from Petrobras preceded this pipe supply award, meaning the contractor locked in its key line pipe package before installation planning advances.

The watch item

The schedule to watch is Sepia 2's progression toward first oil from the new FPSO, which will be installed in roughly 2,170 m of water. Subsequent milestones include pipe rolling at Jeceaba, coating operations at Serra, and Subsea7's offshore installation campaign for the 130 km of risers and flowlines and the export pipeline linking the field to the new vessel.