French tube producer Vallourec expects an increased demand for tubes in Brazil, as Petrobras, the nation’s state-run oil producer and major tube consumer, unveiled its business plan for the 2017-2021 period.
Alexandre Lyra, president at Vallourec in Brazil, said he expects a recovery in domestic demand for tubes as the state-run oil producer heads towards the balance of its finances, in addition to changes in local laws that require a minimum percentage of products to be made domestically.
According to Lyra, Petrobras’ new business plan is “leaner” and “more realistic.” On the other hand, the reduced budget has not substantially affected Petrobras’ production targets.
“This doesn’t reduce demand projections for tubes [which is also used in oil and gas] and then there’s the plan to revitalize the [company’s] operations in several already operating units in the Campos basin,” he said at an industry event in São Paulo.
Lyra said Vallourec should soon complete the merger between Vallourec Tubos do Brasil and Vallourec & Sumitomo Tubos do Brasil.