According to Drilling Contractor, Vallourec has signed a contract with BP Berau to supply premium Corrosion Resistant Alloy pipes and VAM connections for the Tangguh carbon capture and storage project offshore Papua Barat province, Indonesia.
CCS Goes Offshore
The Tangguh project is described as the first offshore CCS project of its kind, putting it on the map as a benchmark for how the industry approaches subsurface carbon storage in marine environments. Vallourec’s scope covers more than just pipe supply. The company will also deliver Tubular Management Services and VAM Field Service support across the full project lifecycle, from initial supply and installation through operational supervision.
No contract value was disclosed, but the scope signals a multi-phase engagement rather than a one-time supply deal. CCS projects are capital-intensive by nature, and the involvement of BP Berau, a subsidiary of one of the world’s largest integrated energy companies, suggests a project with significant long-term activity behind it.
What It Means for Subcontractors
While this project is based in Indonesia, the contracting model and service categories involved point to a broader trend that field service companies should track closely.
- Tubular running and installation crews are an obvious fit as CCS projects scale up. Vallourec’s VAM Field Service model relies on qualified third-party technicians in many regions, creating downstream work for tubular running contractors.
- Inspection and corrosion services will be in demand. CRA pipe used in CO2 injection environments requires specialized handling, inspection protocols, and make-up crews trained on premium connections.
- US Gulf Coast operators watching CCS closely. Several Gulf of Mexico CCS projects are in early development stages, and the Tangguh model will likely inform how domestic operators structure their service contracts. Companies building CCS-related credentials now will have a competitive edge.
- Logistics and laydown yard operators should note that tubular management services require onshore staging, transportation coordination, and inventory tracking, all subcontractable functions.
The Tangguh award reinforces that CCS is moving from planning documents to active field operations, and the service companies that position early will have an advantage when similar projects materialize closer to home.
