Baker Hughes Signs Two Oil and Gas Infrastructure Cooperation Agreements in Venezuela

en.Wedoany.com Reported - On October 5, Baker Hughes signed two oil and gas cooperation agreements in Venezuela. Among them, the company signed a strategic alliance agreement with Venezuela's state-owned oil company PDVSA, engineering firms Lindsayca and Fulcrum LNG, planning to advance infrastructure related to natural gas production, processing, transportation, commercialization, and LNG exports; Baker Hughes also recently signed a memorandum of understanding with New Stratus Energy to cooperate on developing subsequent oil and gas projects in Venezuela.

In the natural gas alliance, Baker Hughes will provide oil and gas field development, natural gas infrastructure, and LNG-related technology and equipment solutions; Lindsayca will be responsible for engineering, procurement, construction, and operational capabilities; Fulcrum LNG will undertake midstream and LNG project development, financing, and market access. The parties will soon determine with PDVSA the infrastructure construction and upgrade projects needed to meet its internal natural gas demand, and evaluate natural gas supply plans for Venezuela's domestic market.

The medium- and long-term scope of work of the alliance includes building open-access midstream natural gas infrastructure and LNG facilities to provide PDVSA and other upstream operators with natural gas processing, transportation, and commercialization capabilities. The relevant cooperation is currently a project development framework, and specific engineering work still requires separately signed final agreements, as well as compliance with each participant's internal approval procedures and the relevant sanctions and export control requirements of the U.S. Department of the Treasury's Office of Foreign Assets Control.

The memorandum of understanding signed between Baker Hughes and New Stratus Energy is aimed at future oil and gas resource development. Baker Hughes plans to provide formation evaluation, drilling, production, processing, digitalization, emissions reduction, power generation, oil and gas commercialization, and LNG technologies. The specific blocks, investment scale, equipment quantities, development plans, and implementation timelines have not yet been announced.

Baker Hughes currently has more than 1,200 oil production systems deployed in Venezuela and approximately 240 turbine mechanical equipment units at 23 sites. The new agreements will use the existing oil and gas production and turbine equipment base as project development conditions, and subsequent specific equipment orders and engineering contracts will need to be determined based on individual project agreements.