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Growing into a major
player in Asia Pacific

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01/12/2014

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December 2014 Contact us
Growing into a major <br>player in Asia Pacific

Vallourec’s reach is sometimes the fruit of long-lasting partnerships and powerful local strategies. P.T. Citra Tubindo (PTCT), in Indonesia, is a striking example of such partnerships.
In under 30 years, PTCT has grown from a local company into a world-class partner of Vallourec throughout the Asia Pacific area and beyond.

PTCT’s facilities are located in Kabil Integrated Industrial Estate, Batam, Indonesia, and provide heat treatment, Premium connections such as VAM® and other proprietary OCTG products in addition to oilfield accessories and a wide range of services and logistics solutions. Together, we can cover most of the tubular needs in Oil & Gas of all the major National and International Oil Companies. As partners, our scope has expanded vastly, and we can now deliver high-value global solutions worldwide with a dedicated focus for the regional Asia Pacific market.

On the road to success with powerful local content Partner
The story of PT Citra Tubindo began with founder CEO Kris Wiluan, in 1983, on the island of Batam, Indonesia, located just 20km south of Singapore. The company started with a processing facility that delivered pipe threading for seamless pipes as well as couplings and oilfield accessories, predominantly for its domestic market. PTCT, under the leadership of Kris Wiluan and a strong partnership with Vallourec, developed quickly, becoming a VAM® licensee as early as 1985 and an associate of Vallourec since its public listing in 1989. By 1994, in addition to connections and accessories, PTCT had integrated its original pipe threading plant with a state-of-the-art OCTG processing center that contained the first tubular heat treatment facility in Southeast Asia. Three decades after its foundation, PTCT has grown into a major logistics center, boasting a vast facility that includes OCTG and drilling products, accessories as well as an all-encompassing port that delivers far beyond Indonesia.
Kris Wiluan shares the early strategy of the company: “We started off with a profound desire to be a part of the energy sector as it plays such an important role in the development of our country. Indonesia has considerable natural resources and we were proud to help contribute to the wealth of the country. Our philosophy has been to bring local answers for the production of oil and gas in the very country where these resources are exploited. We have sought to bring competitive answers efficient logistics to a fast-growing industry while stimulating our national growth.”
Didier Hornet, Senior Vice President OCTG and Drilling Sector, adds, “With partnership with PTCT, Vallourec is closer to all its customers in Asia Pacific. We can provide faster responses to their needs and requests and rely on a powerful local network to deliver even the most demanding customers. We best serve our clients when we work with PTCT’s local resources and logistics. Together, we have a unique insight on the Asia Pacific market and a privileged strategic proximity. Our reach over this vast area is definitely enhanced by the powerful local content of PTCT.”
But the conquest of the Indonesian and Asia Pacific market was no easy task, as Kris Wiluan continues: “Our challenge was to face the huge demands and potential of our oil fields and prove we were able to supply the materials, equipment and services locally. It was quite a task, as we started from scratch. We built our teams, our expertise and know-how step by step. We were able to demonstrate, very early on, that we could indeed answer the requirements and specifications of Oil & Gas companies. With time, we widened and improved our spectrum of services and capabilities, showing we were able to exceed expectations, delivering richer and more comprehensive solutions to a growingly complex market.”

Batam, a port at the heart of PTCT’s reach
PTCT’s Kabil port in Batam is unique and strategically located, with 78.4 ha of infrastructures. The deepwater port is at the very heart of the industrial center, providing the infrastructure and reach to serve global export of all the company’s products and services worldwide. Today, over 75% of its products are shipped to major International oil companies as well as state oil companies, from Batam.
The port can support all operational requirements for off-shore drilling as a logistics and operational base for oil and gas companies, logistic companies and industries to stock and fabricate oilfield equipment, including jetty services, stevedoring, trucking, wharfage, open storage yards, and warehouses.

A vast array of products and services
PTCT manufactures a wide range of pipes, connections and accessories.
The seamless pipes heat treatment plant has an annual production capacity of 120,000 metric tons and can produce pipe sizes ranging from 2-3/8” to 13-3/8” in both standard API, Premium and proprietary grades. The company manufactures thread protectors and packaging systems for threaded pipes through integrated solutions to reduce the dependency from other suppliers.

Supplying accessories and maintenance in record time
Short delays and reactivity are the very nature of the accessory activity, and PTCT delivers according to customer need, from a couple of weeks down to a couple of days after order. PTCT supplies Pups, Cross-overs, lifting equipment, TMC services (threading) on completion and well heads. Thanks to its OCTG core business, PTCT also sells base pipe for sand screens.
As accessories are a specific market segment, PTCT set up a workshop with a dedicated team to offer optimal service. Flexibility is of the essence and the accessory department can deliver all items for connections ranging from 2 3/8” to 22”. In addition, the facility’s workshop can also handle the maintenance of OCTG and Drilling connections, including the most complex products like VAM® BOLTTM and VAM® 21TM.

The most advanced testing facility in Southeast Asia
With oil & gas companies exploring and drilling in tougher oil fields and environments, product behavior is key: testing the performance of all products and accessories is crucial to ensure well integrity. To verify the reliability of the final product, a fully calibrated in-house inspection facility was created by PTCT to carry out a large number of destructive and non-destructive tests. In addition, Citra Tubindo created an in-house Connection Development Evaluation Centre (CDEC), under VAM® quality supervision, to perform combined load gas testing for premium connections. The center houses a 1,000 ton horizontal load frame providing axial loading in tension and compression, internal and external pressure application, bending loads and elevated temperature testing. Also located within the CDEC facility is the CNC threading and torque/turn, stress/strain, equipment. Validating performance in specific well conditions can even help improve the design for each specific well.
The Batam facility is unique in the region: Vallourec and PTCT can claim having the most advanced and comprehensive testing facility in the Asia Pacific area.

Global Solutions. Building a strategy for the future
“Asia Pacific is a very competitive area. Selling even the widest range of products isn’t enough to remain an influential player in the industry of Oil & Gas, especially with so many low-cost suppliers blossoming in Asia…” explains Kris Wiluan, “In our Oil & Gas industry today, we aim to be higher in the food chain. We can supply port logistics, repairs and maintenance, training, local organization and oilfield services in addition to our products because this is where we can bring value to the market. With our sister companies, we are even widening our offer to supply rigs and field equipment.” A remarkable example of a Vallourec’s global solutions offer is the ongoing Total Brunei project that combines high-end premium products and PTCT’s best logistics and services (see box).
In addition, Vallourec will enhance its Asia Pacific area offer with solutions for subsea, supplying offshore line pipe for SURF projects with PTCT. Vallourec will be delivering 7,118 tons of flowline to Technip for the Jangkrik gas field development project (for Eni Muara Bakau B.V., the Operator of the Muara Bakau PSC, off the coast of Makassar Strait, Indonesia).

Didier Hornet concludes: “Batam proves a powerful hub for Vallourec’s reach in Asia Pacific. PTCT is a key partner and its wide scope of logistics and services are a major asset in a highly competitive area. We are confident we can continue to expand our reach in the Asia Pacific by combining innovation, strong local value and bold global solutions for our most demanding customers!”

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