Saudi Aramco, Baker Hughes signs MoU for manufacturing facility
July 03, 2019 – The agreement is for the creation of a non-metallic materials production facility in the Kingdom
Saudi Aramco and Baker Hughes (BHGE) have signed a memorandum of understanding (MoU) to create a new joint venture (JV) facility in Saudi Arabia to manufacture non-metallic materials for use in the energy industry.
The agreement is in line with Saudi Aramco’s strategy to accelerate the deployment of non-metallic materials globally.
The JV will initially focus on non-metallic reinforced thermoplastic pipes as a first and critical step towards developing such capabilities in Saudi Arabia, Saudi Aramco said in a statement. It added that the focus on non-metallic materials is intended to add to the efficiency and reliability of operational assets by reducing the effects of corrosion.
Ahmad Al Sa’adi, senior vice president for Technical Services at Saudi Aramco said that the partnership with BHGE is another step in their journey towards expanding the use of innovative non-metallic materials in their operations.
“Saudi Aramco has successfully deployed more than 5,000 km of non-metallic pipes, resulting in a significant increase in efficiency and reduction in maintenance and replacement costs across the company’s operations.”
“Producing these materials in the Kingdom would also unlock opportunities for local manufacturers and facilitate knowledge transfer.”
Meanwhile, Neil Saunders, CEO of BHGE Oilfield Equipment, said: “As a full stream oil and gas service and technology provider, we have a deep background driving non-metallic product development that will benefit a wide range of industries.”
“Saudi Aramco’s vision to expand their product development in the region aligns with our vision to support innovation and manufacturing in Saudi Arabia,” he added.
Additionally, the state-owned oil company recently opened a Non-metallic Innovation Centre in the UK in collaboration with the UK-based Welding Institute and the National Structural Integrity Research Centre. The Innovation centre will conduct research and development of non-metallic technologies, as well as collaborate with leading academic institutions and manufacturers to develop, test, and market new products.