Localization opportunities to increase local raw materials and support local workforce development
Riyadh, Saudi Arabia: Baker Hughes (NASDAQ: BKR) and Dussur, owned by the Saudi Public Investment Fund (PIF), Saudi Aramco and SABIC (Saudi Basic Industries Corporation), have signed an agreement to form a joint venture (JV) focused on providing oil fields and industrial chemicals in the Kingdom of Saudi Arabia (Saudi Arabia).
The joint venture supports Baker Hughes’ efforts to better serve the chemicals market in the region and includes the company’s existing chemical blending plant in Dammam and manufacturing plant in Jubail. The joint venture brings Baker Hughes closer to its customers and suppliers, creating efficiencies including reduced operating expenses and locally sourced raw materials.
“This partnership is directly aligned with our broader strategy of investing for growth and leveraging 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 petroleum services at Baker Hughes. “Baker Hughes and Dussur share a commitment to exceeding customer expectations, making this joint venture a natural fit that we are proud to announce today.”
Under the joint venture, Baker Hughes’ manufacturing facility in Jubail will directly support chemicals focused on Saudi Arabia’s needs while expanding localization opportunities. The joint venture includes increasing Saudi Arabia’s raw material supply base targets and accelerating the development of skills and manufacturing capabilities of the local workforce.
“Baker Hughes’ expertise and technology leadership made it the ideal partner in this joint venture,” said Dr. Raed Al-Rayes, CEO of Dussur. “Expanding the role of oilfield chemical manufacturing in Saudi Arabia is an important link to Dussur’s mission to support the Kingdom’s industrialization journey and locate technologies that will introduce new capabilities into the supply chain. value. We look forward to beginning our work with Baker Hughes to help secure supply in the region and build local capacity for the jobs of the future.
Baker Hughes will bring its existing infrastructure, personnel and contracts within Saudi Arabia related to oilfields and industrial chemicals under the terms of the agreement. Baker Hughes will own 51% of the JV and Dussur will own 49%. Upon closing, the JV will continue to operate under the Baker Hughes brand and Baker Hughes will participate exclusively in the Saudi Arabian chemicals market through the JV. The transaction is expected to close in the third quarter of this year.
About Baker Hughes
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Backed by a century of experience and operating in more than 120 countries, our innovative technologies and services advance energy – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.