Nippon Steel to continue supplying OCTG to Brunei's crude oil and natural gas producer

12 December, 2023 by

In a significant development, Nippon Steel Corporation, in collaboration with Sumitomo Corporation, has finalized an extended contract with Brunei Shell Petroleum Company Sendirian Berhad (BSP), a prominent crude oil and natural gas producer in Brunei. This revised agreement secures the supply of oil country tubular goods (OCTG) for an additional 10 years.

This partnership between Nippon Steel and Sumitomo Corporation has spanned over half a century, demonstrating a longstanding commitment to delivering seamless OCTG to BSP. The extended contract reflects the enduring relationship between the companies and highlights their dedication to supporting Brunei's energy sector.

The joint efforts of Nippon Steel, Sumitomo Corporation, and Vallourec Tubes SAS, a subsidiary of Vallourec, a leading French pipe manufacturer, have resulted in the establishment of VAM® BRN. This cutting-edge OCTG threading facility was established as part of the original contract, contributing to the local economy and fostering employment opportunities in Brunei.

VAM® BRN, operational since December 2016, boasts an annual capacity of 5,500 metric tons. The facility plays a crucial role in fulfilling the OCTG requirements outlined in the contract, ensuring a localized and efficient supply chain. This strategic move aligns with the companies' commitment to not only meeting the energy needs of Brunei but also actively participating in the development of the local industry.

The collaborative efforts of Nippon Steel, Sumitomo Corporation, and Vallourec Tubes SAS underscore a shared vision of sustainable growth, technological advancement, and community development. As the extended contract comes into effect, the partnership continues to be a driving force in the success and resilience of Brunei's crude oil and natural gas sector.

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