RIYADH: Saudi Aramco and energy technology firm Baker Hughes have announced the formation of a 50/50 joint venture to develop and commercialize a broad range of non-metallic products for multiple applications across the energy sector.
The newly formed company will be named Novel Non-Metallic Solutions Manufacturing (Novel).
To mark the start of construction, a ceremony held on Tuesday at the project site was attended by Aramco’s senior vice president for technical services, Ahmad Al-Sa’adi, and the chairman and CEO of Baker Hughes, Lorenzo Simonelli.
Novel’s new facility is being developed at King Salman Energy Park (SPARK), in the Kingdom’s Eastern Province.
SPARK is a 50-square-kilometer energy city megaproject which will position Saudi Arabia as a global energy, industrial, and technology hub. Initially, the facility will produce onshore non-metallic pipelines, including reinforced thermoplastic pipes (RTP), from composite materials.
The joint venture is based on a shareholders’ agreement signed in February this year during Aramco’s fifth In-Kingdom Total Value Add (IKTVA) forum. Both companies initially signed a memorandum of understanding to create a non-metallics joint venture in July last year.
The partnership is part of Aramco’s long-term strategy to seek new opportunities in oil-based products and support the government’s efforts to expand its commercial ecosystem and promote domestic investment.
Al-Sa’adi said: “Non-metallic products are reshaping the industries and products we all depend on because they are more reliable, cost effective, and offer sustainability benefits.
“The partnership with Baker Hughes reinforces our commitment to expanding the use of innovative non-metallic materials in our operations to drive efficiency and reduce maintenance and replacement costs, while also positively impacting the Kingdom’s economic development through job creation and local expertise,” he added.
Neil Saunders, executive vice president for oilfield equipment at Baker Hughes, said: “As an energy technology company, we are investing for growth in strategic areas like non-metallics, and our deep background in non-metallic product development will benefit a wide range of industries.
“Aramco’s vision to expand its product development in the region aligns with our vision to support innovation and manufacturing in Saudi Arabia.”
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