Baker Hughes, an American energy technology firm, the Saudi Arabian Industrial Investments Company (Dussur), Saudi Aramco, and Saudi Basic Industries Corporation (SABIC) have signed a joint venture agreement to provide oilfield and industrial chemicals in Saudi Arabia (KSA).
The JV supports Baker Hughes’ efforts to better serve the chemical market in the region and includes the company’s existing chemical blend plant in Dammam and manufacturing facility in Jubail. The JV brings Baker Hughes closer to customers and suppliers, creating efficiencies including lower operating expenses and locally sourced raw materials.
As part of the JV, the manufacturing facility in Jubail will directly support chemicals focused on the needs of Saudi while expanding localization opportunities. The JV aims to increase Saudi Arabia’s supply base targets of raw materials and accelerate the development of manufacturing skills and capabilities of the local workforce.
“Baker Hughes’ expertise and technology leadership made them the ideal partner in this joint venture. 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.”
Under the agreement, Baker Hughes will provide its existing infrastructure, personnel, and contracts within KSA related to oilfield and industrial chemicals. Baker Hughes will own 51 percent of the JV, and Dussur will own 49 percent. Upon close, the JV will continue to operate under the Baker Hughes brand and the transaction is expected to close in the third quarter of this year.
“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 Ms. Maria Claudia Borras, executive vice president of oilfield services at Baker Hughes.