Baker Hughes Opens Chemicals Plant in Singapore
19.08.2022 - US energy technology company Baker Hughes has opened a new oilfield services chemicals manufacturing facility in Singapore, boosting its local capabilities and expanding its presence in Asia.
The facility will manufacture, store and distribute chemical solutions for upstream, midstream, downstream and adjacent industries to support regional customers. Baker Hughes added that the plant’s overall design, in addition to its ethylene oxide pipeline, also reduces the need for the road transport and handling of chemicals.
“The opening of the Singapore chemicals manufacturing facility significantly expands our ability to serve the Asia-Pacific region’s oilfield services industry,” said Maria Claudia Borras, executive vice president for oilfield services. “The opening of this facility is aligned to our vision of supporting customers’ needs and investing for growth in the increasingly important chemicals sector.”
The plant is the first chemicals facility for Baker Hughes in Asia, although the company already had more than 800 employees in Singapore working at several of its other manufacturing sites.
Chairman of Singapore’s Economic Development Board Beh Swan Gin said the firm’s investment is “testament to Singapore’s attractiveness to the high-value downstream specialty chemicals sector and will enable the company to address the growing demand from their customers in Asia Pacific.”
The Houston-based group’s strategy is to source and produce chemicals close to key demand hubs. In March, it announced plans to form a 51:49 joint venture with Dussur in Saudi Arabia, focused on providing oilfield and industrial chemicals. Baker Hughes said the JV, which is expected to be formalized in the third quarter of 2022, will support its efforts to better serve the local chemical market and bring it closer to customers and suppliers.
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Chairman and CEO Lorenzo Simonelli and Minister of Trade and Industry Mr. Gan Kim Yong, celebrate the opening of the new Singapore chemicals facility. © Baker Hughes
Russian oilfield exit
In separate news, Baker Hughes announced on Aug. 1 that it had signed an agreement to sell its Russian oilfield services business to the local management team. The move follows its previous suspension of new investments in Russia as a result of the war in Ukraine.
The transaction is expected to close in the second half of 2022, subject to approval by the local authorities. The new business will assume all existing Russian assets, liabilities and commercial obligations.
Author: Elaine Burridge, Freelance Journalist
