Baker Hughes, Dussur, Saudi Aramco, SABIC signed an agreement Wednesday to form a joint venture (JV) to provide oilfield and industrial chemical in Saudi Arabia.
“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,” Maria Claudia Borras, executive vice president of oilfield services at Baker Hughes said in a statement.
“Baker Hughes and Dussur share a commitment to exceeding customers’ expectations, making this JV a natural fit and one that we are proud to announce today.”
Baker Hughes’ manufacturing facility in Jubail will help support Saudi Arabia’s chemical needs as part of the JV and increase localisation 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’ expertise and technology leadership made them the ideal partner in this joint venture,” Dr. Raed Al-Rayes, CEO of Dussur said in the statement.
“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,” he added.
Localisation is a key focus point for Saudi Arabia as the kingdom looks to build resilience in its supply chain. The issue has been further highlighted following the global supply chain disruptions caused by the Covid-19 pandemic.
