Industrial Chemicals Baker Hughes, Dussur to Establish Joint Venture in Saudi Arabia
Baker Hughes and Dussur have plans to form a chemicals joint venture which will focus on providing oilfield and industrial chemicals in Saudi Arabia. Baker Hughes will own 51 % of the new joint venture while Dussur will own 49 %.
Riyadh/Saudi Arabia – Baker Hughes and Dussur, owned by the Saudi Arabian Public Investment Fund (PIF), Saudi Aramco and Sabic (Saudi Basic Industries Corporation), have signed an agreement to form a joint venture company (JV) focused on providing oilfield and industrial chemicals in The Kingdom of 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.
“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 needs of KSA while expanding localization opportunities. The JV includes increasing Saudi Arabia’s supply base targets of raw materials and accelerate the development of manufacturing skills and capabilities of the local workforce.
Baker Hughes will contribute its existing infrastructure, personnel, and contracts within KSA related to oilfield and industrial chemicals under the terms of the agreement. Baker Hughes will own 51 % of the JV, and Dussur will own 49 %. Upon close, the JV will continue to operate under the Baker Hughes brand and Baker Hughes will exclusively participate in the KSA chemicals market through the JV. The transaction is expected to close in the third quarter of this year.