BAKU, Azerbaijan, October 6. Baker Hughes has
signed two agreements aimed at supporting the development of
Venezuela’s natural gas and oil infrastructure.


Baker Hughes said on October 5 that under the strategic
alliance, Baker Hughes will work with PDVSA, Lindsayca and Fulcrum
LNG to develop and upgrade infrastructure needed for gas
production, processing, transportation and commercialization, while
also exploring future LNG export opportunities.


The agreement provides a framework for the partners to develop
specific projects spanning upstream resource development, midstream
infrastructure, gas monetization and LNG commercialization. Baker
Hughes said the initiative could provide a pathway toward
Venezuela’s first LNG exports.


“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,” Baker Hughes Chairman and CEO Lorenzo
Simonelli said.


“This creates a pathway to unlock Venezuela's significant
natural gas potential,” the company said.


In the near term, the partners will work with PDVSA to identify
infrastructure projects and upgrades required to meet the country’s
internal gas requirements and support domestic power generation,
according to Fulcrum LNG CEO Jesus Bronchalo.


Over the medium and long term, the companies plan to assess the
development and financing of new open-access midstream and LNG
infrastructure that could allow PDVSA and other upstream operators
to monetize their gas resources for domestic and international
markets.


The second agreement, an MOU with New Stratus Energy, is focused
on the future development of oil and gas resources in Venezuela.
Under the MOU, Baker Hughes will provide access to technologies and
services covering subsurface evaluation, drilling, production,
processing, digital solutions, emissions reduction, power
generation, oil and gas monetization and LNG.


Baker Hughes’ longstanding presence in
Venezuela







The new agreements build on Baker Hughes’ more than six decades
of operations in Venezuela. The company said its existing installed
base in the country includes more than 1,200 oil production
systems, the largest artificial-lift footprint in the country,
flexible pipe infrastructure and around 240 turbomachinery units
across 23 sites.


The company’s established presence gives the new agreements a
broader significance, as Baker Hughes is seeking to combine its
existing equipment and technology base in Venezuela with new
infrastructure development and resource-monetization projects.


Baker Hughes has described its Venezuelan operations as part of
its broader international oil and gas business, providing
technologies and services across the upstream, midstream and
downstream segments.


The company said the new alliance with PDVSA, Lindsayca and
Fulcrum will combine Baker Hughes’ technologies for oil and gas
field development, gas infrastructure and LNG with Lindsayca’s
engineering, procurement and construction capabilities and
Fulcrum’s expertise in midstream and LNG project development,
financing and market access.


The partners said the cooperation is intended to create an
integrated gas value chain extending from upstream production to
domestic and export markets.


However, the alliance itself is a cooperation framework rather
than a final investment commitment. Any individual project will
require separate definitive agreements, internal approvals and
compliance with applicable U.S. sanctions and export-control
requirements, including authorizations from the U.S. Department of
the Treasury’s Office of Foreign Assets Control (OFAC).


The developments come as Venezuela seeks to expand the use of
its substantial hydrocarbon resources and restore energy
infrastructure, while Baker Hughes is positioning its technology
portfolio to participate in potential new oil, gas and LNG projects
in the country.


Baker Hughes is a global energy technology company providing
products and services to oil and gas and industrial customers. The
company operates in more than 120 countries.