Saudi Aramco has awarded a $175mn contract to Baker Hughes to drive enhanced production at the Haradh and Hawiyah gas fields, underlining the strong local partnerships of Baker Hughes in the Kingdom.
Part of Al-Ghawar, the world’s largest oilfield, Haradh and Hawiyah gas fields play a key role in supporting the Kingdom’s focus on leveraging its gas resources, complementing Saudi Aramco’s plans to double gas production to 23bn standard cubic feet per day in the next decade. This is also in line with the Kingdom’s goal to increase the contribution of gas from 50 to 70% of the overall energy mix, the highest among the G20 countries.
Baker Hughes will supply 27 high-efficiency gas compression trains consisting of compressors, gearboxes, electric motors and loop oil systems for the extraction of gas from Haradh and Hawiyah to feed the fields’ existing gas plants for processing, contributing to increased operational efficiency.
This marks another significant turbomachinery win for Baker Hughes in Saudi Arabia, and further underlines its commitment to Iktva, with several Saudi-based suppliers benefitting from the contract. Baker Hughes will work with local suppliers to help deliver the equipment order, contributing to increased localisation and technology transfer. This in turn supports a Saudi-based small and medium enterprises (SME) supply chain that will boost the economy.
The contract will be delivered by Baker Hughes’ multimodal facilities in the Kingdom which will undertake the packaging, assembly, testing and servicing of the turbomachinery equipment, further supporting the development of high quality jobs for Saudi professionals and marking the expansion of the existing facilities. Baker Hughes will also work with Saudi suppliers that support the oil and gas industry through the distribution of advanced equipment.
Abdulaziz Al-Abdulkarim, vice president, procurement and supply chain management, Saudi Aramco, said: “Through our major projects, we are supporting the goals of Saudi Vision 2030 that focuses on localising our industry and creating new jobs for Saudi talents.”
“The contract with Baker Hughes has a strong in-Kingdom value creation component that will benefit the development of a ‘Made in Saudi’ supply chain for the oil and gas sector. The gas compression trains to be supplied by Baker Hughes will further enhance the efficiency of our gas fields, bringing more value to the economy,” added Al-Abdulkarim.
Rami Qasem, president and CEO, Baker Hughes, MENAT and India, said: “With over 80 years of presence in the Kingdom, we are committed to supporting the oil and gas sector through our advanced equipment that brings greater operational efficiency and productivity to Saudi Aramco, our long-term partner.”
“The contract also marks further localisation of our operations by drawing on our global competencies to support the Saudi economy, with the gas compression trains manufactured in Italy and packaged here in Saudi. A portion of the testing and assembly will also be done in the Kingdom, with the support of Saudi SME partners, reinforcing our focus on developing the local supply chain in line with the Iktva programme of Saudi Aramco,” added Qasem.
With over 2,600 employees in the Kingdom, Baker Hughes has a strong local presence marked by localised oilfield equipment manufacturing. The company has tripled the capacity of the manufacturing facility to meet the local demand of pressure control equipment. Baker Hughes’ drill bit manufacturing plant, which produces polycrystalline diamond compact drill bits that are made entirely in the Kingdom, exports to over 40 countries worldwide.