Baker Hughes has signed two agreements aimed at supporting the redevelopment of Venezuela’s energy infrastructure and expansion of the country’s natural gas sector.
The company signed an alliance agreement in Caracas with Venezuelan state oil company PDVSA, Lindsayca and Fulcrum LNG, targeting the restoration and extension of natural gas infrastructure.
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In a separate development, Baker Hughes signed a memorandum of understanding (MoU) with New Stratus Energy to support future oil and gas projects in the country.
According to Baker Hughes, the agreements create an enterprise-deal framework spanning upstream resource development, midstream infrastructure, gas monetisation and liquefied natural gas (LNG) commercialisation.
Baker Hughes chairman and CEO Lorenzo Simonelli said: “A central objective of these partnerships is the development of an integrated gas value chain capable of transforming Venezuela’s substantial natural gas resources into reliable domestic supply and future export opportunities, including the potential to export the first LNG molecules produced in Venezuela.”
Under the alliance, the parties plan to develop project-specific agreements for infrastructure to process, transport, commercialise and export gas.
The initial agreement framework sets out cooperation to process, transport, commercialise and export natural gas.
Baker Hughes will supply energy technologies covering oil and gas field development, gas infrastructure and LNG.
Lindsayca is set to provide engineering, procurement, construction and operational capabilities, while Fulcrum will contribute midstream and LNG development, financing and market access.
Fulcrum LNG CEO Jesus Bronchalo said: “This strategic alliance with PDVSA is a historic opportunity to maximise the use and value of Venezuela’s natural gas resources, and it reflects the capabilities and expertise of Fulcrum, Lindsayca and Baker Hughes in developing fully integrated gas value chains, from upstream production to end markets.”
Baker Hughes indicated that any specific projects will require further definitive deals, subject to internal approvals and compliance with US sanctions and export control laws, including authorisations from the US Department of the Treasury’s Office of Foreign Assets Control.
Under its MoU with New Stratus, Baker Hughes will support future prospects using its digital, drilling, emissions abatement, LNG, oil and gas monetisation, power generation, processing, production and subsurface technologies.
The company said these capabilities are intended to maximise resource recovery opportunities and enhance future project development.
Baker Hughes has operated in Venezuela for more than six decades.
The company has more than 1,200 oil production systems installed, a large artificial lift infrastructure, significant flexible pipe installations and roughly 240 turbomachinery units across 23 sites in the country.
Last month, Baker Hughes was selected by bp to deliver stimulation services across the oil major’s UK North Sea operations.
