Technip Takes 20% Stake in Vallourec Pipe Weld Unit

French oil services company Technip and Serimax, a welding subsidiary of steel pipe maker Vallourec (VAC.F) have reached an agreement in which Technip will take a minority 20 percent stake in Serimax, the companies said.

 

The firms did not disclose the value of the deal, but said it would offer integrated solutions to oil company clients who are facing financial constraints due to the oil price collapse and have to tighten capital expenditure.

 

"This partnership is part of Technip's strategic focus on technology, a key differentiator to contribute to costs optimization on projects," Hallvard Hasselknippe, president of Technip's subsea division said in a statement on Monday.

 

Didier Hornet, a Vallourec senior vice president responsible for oil and gas strategy said: "Delivering solutions to the oil and gas market require companies that are agile and capable of growing together to meet market expectations."

 

Technip and Serimax will combine their expertise and will deploy Serimax's welding technology at Technip's vessels, the companies said.

 

They will also invest in research and development programmes but Serimax will remain an independent service and technology provider. It will continue to serve its clients in the offshore, onshore pipeline markets.

 

"We are confident that combining both company's technologies will make a real difference to the market and offers greater opportunities to think differently about how we package solutions for clients," Hornet said.