The companies have commenced construction at the manufacturing site at King Salman Energy Park (SPARK), in Saudi Arabia’s Eastern Province

Aramco Baker Hughes

Officials of Bake Hughes and Aramco at the project site construction ceremony. (Credit: Business Wire.)

Saudi Aramco (Aramco), the Saudi Arabia-based oil and gas company and Baker Hughes have formed a new 50/50 joint venture (JV) Novel for the manufacture of non-metallic products to be used in the energy sector.

Last July, the two companies have signed a memorandum of understanding (MOU) to create a non-metallics joint venture. Now, they have initiated construction at the project site at King Salman Energy Park (SPARK), in Saudi Arabia’s Eastern Province.

SPARK is a megaproject which is expected to position the country as a global energy, industrial and technology hub. Initially, the facility is will produce onshore non-metallic pipelines including reinforced thermoplastic pipes (RTP) from composite materials.

Aramco technical services senior vice president Ahmad 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.”

Novel aligns with Aramco’s strategy to develop new oil-based products

As per Aramco, the joint venture aligns with its strategy to seek new opportunities in oil-based products, which not only offer performance benefits, but can also reduce carbon emissions.

Apart from creating new jobs, the new facility at SPARK is expected to contribute to the growth of an emerging and innovative sector in line with the country’s Vision 2030.

Baker Hughes oilfield equipment executive vice president Neil Saunders 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.”

The non-metallic products produced by Novel are expected to be used across a variety of industries ranging from oil and gas sector to automotive, building and construction, packaging and renewables.