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Commencement of VAM® BRN Commercial Operation in Brunei

Commencement of VAM® BRN Commercial Operation in Brunei

Nippon Steel & Sumitomo Metal Corporation (“NSSMC”) and Sumitomo Corporation (“Sumitomo”) hereby announces that VAM® BRN Sdn Bhd (“VAM® BRN”), a joint venture set up in Brunei by NSSMC, Sumitomo, and Vallourec Tubes S.A.S., has commenced its commercial Operation as of November 2016. VAM®BRN will provide OCTG pipe threading services in Brunei, with its threading capacity of 18,000 tons per year.

For more than 40 years, NSSMC and Sumitomo have been supplying seamless OCTG pipes to Brunei Shell Petroleum Co Sdn (“BSP”), a leading upstream oil and natural gas company in Brunei for drilling operations. Commencement of VAM® BRN commercial Operation will contribute to the development of local employment, and knowledge transfer from Japan to Brunei. In conjunction with this, from January 2017, Sumitomo will commence its Supply Chain Management Service with its own stock yard adjacent to VAM®BRN.

As drilling conditions are becoming increasingly harsh, the demand for premium connections for seamless OCTG pipes for crude oil and natural gas industry is on the rise. Commencement of VAM®BRN commercial Operation will develop a system for stable supplies of seamless OCTG pipes.

*1 VAM® is a registered trademark of Vallourec Oil and Gas France for premium connections threaded on seamless pipes which are being jointly developed by NSSMC and Vallourec Oil and Gas France

<Company profile:VAM®BRN>

Name: VAM® BRN Sdn Bhd

Location: Near Bandar Seri Begawan, Brunei-Muara District

Shareholders: -Nippon Steel & Sumitomo Metal Corporation: 60%

-Sumitomo Corporation Group: 30%, consisting of:

Sumitomo Corporation Asia & Oceania Pte. Ltd: 12%

Sumitomo Corporation: 18%

-Vallourec Tubes S.A.S.: 10%

No. of employees: About 110

Investment amount: Approx. 36 million US dollars

Main facilities: Small-diameter pipe threading line, middle-diameter pipe threading line

Operation capacity: 18,000 tons


<Company Profile:BSP>

Name: Brunei Shell Petroleum Co Sdn

Location: Kuala Belait, Brunei-Seria

Shareholders: Royal Dutch Shell plc: 50%

Government of Brunei: 50%

Major business: Excavation and sale of oil and natural gas