Baker Hughes and the Saudi Arabian Industrial Investments Company (Dussur), have signed an agreement to form a joint venture company focused on providing oilfield and industrial chemicals in the Kingdom of Saudi Arabia
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.
“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.
As part of the JV, Baker Hughes’ manufacturing facility in Jubail will directly support chemicals focused on the kingdom’s needs while expanding localisation opportunities. The JV’s objectives include increasing Saudi Arabia’s supply base targets of raw materials and accelerating 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,” said Dr. Raed Al-Rayes, CEO, Dussur. “Expanding the role of oilfield chemicals manufacturing in Saudi Arabia is an important link to Dussur’s mission to support the Kingdom’s industrialisation journey and localise 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.”
Baker Hughes will own 51% of the JV, and Dussur, which is owned by the Saudi Arabian Public Investment Fund (PIF), Saudi Aramco and SABIC (Saudi Basic Industries Corporation) will own 49%. The transaction is expected to close in the third quarter of this year.