Baker Hughes Forms Saudi JV
US oilfield services giant Baker Hughes has agreed to form a joint venture in Saudi Arabia that will focus on providing oilfield and industrial chemicals. Baker Hughes will hold the majority 51% stake, while partner Dussur – a Saudi government company established in 2014 for the development of strategic industrial investments – will own the remaining 49%.
The venture will include Baker Hughes’ chemical blend plant in Dammam and its manufacturing facility in Jubail. Baker Hughes said the venture supports its efforts to better serve the region’s chemical market and brings it closer to customers and suppliers, creating efficiencies such as lower operating expenses and locally sourced raw materials.
“This partnership is directly aligned to our broader strategy to invest for growth and leverage our existing strengths while exploring new business models to better serve our customers and the regions in which we operate,” said Maria Claudia Borras, executive vice president of oilfield services at Baker Hughes.”
Under the terms of the agreement, the Houston, Texas-headquartered group will contribute its existing infrastructure, personnel and contracts related to oilfield and industrial chemicals within Saudi Arabia. The transaction is expected to close in the third quarter of this year.
Dussur’s CEO Raed Al-Rayes commented: “Expanding the role of oilfield chemicals manufacturing in Saudi Arabia is an important link to Dussur’s mission to support the Kingdom’s industrialization journey and localize technologies that will introduce new value chain capabilities. We are looking forward to commencing our work with Baker Hughes to contribute to the security of supply in the region and build local capabilities for the jobs of the future.”
Dussur’s shareholders include Saudi Aramco, SABIC and the Public Investment Fund.
Author: Elaine Burridge, Freelance Journalist
