Dussur, a Saudi industrial investments company, jointly owned by Sabic, Aramco and the Public Investment Fund (PIF), has signed an agreement with Baker Hughes to form a joint venture focused on providing oilfield and industrial chemicals in Saudi Arabia.

The JV, owned 51 per cent by Baker Hughes and 49 per cent by Dussur, will allow the former to better serve regional customers and suppliers, and create efficiencies including lower operating expenses and locally sourced raw materials.

It will also enable to increase Saudi Arabia’s supply base targets of raw materials and accelerate the development of manufacturing skills and capabilities of the local workforce.

The JV will be supported by Baker Hughes’s existing chemical blend plant in Dammam and manufacturing facility in Jubail, with the latter directly supporting chemicals that meet the Kingdom’s needs while expanding localisation opportunities.

The company will contribute its existing infrastructure, personnel, and contracts within KSA related to oilfield and industrial chemicals under the terms of the agreement.

Commenting on the JV, Maria Claudia Borras, Executive Vice-President of Oilfield Services at Baker Hughes, says: "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.

Meanwhile, Dr Raed Al-Rayes, CEO, Dussur, says: "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."

Upon closing of the transaction, expected in Q3 this year, 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.