October 12, 2008

Vallourec and Petrobas develop oil tubes - CEO

Reuters reported that steel tube maker Vallourec is working with Petrobras to develop tubes for two new offshore oilfields in Brazil.

Mr Pierre Verluca CEO of Vallourec at an opening ceremony of a new continuous casting line said that Vallourec will help Brazilian state controlled oil copmany Petrobas to see what kind of tubes are best for the new fields, without giving more details.

Mr Etienne Bertrand director of investor relations of Vallourec told Reuters that Vallourec's business was brisk but the company, like all European firms, was suffering from the effects of a weak dollar.

Mr Betrand said that higher raw material prices were also eroding margins because of fixed-price contracts, meaning there was a delay of a few months before the price increases could be passed onto clients.