Aker Solutions and Baker Hughes have signed an agreement to form an alliance to develop technology for production solutions for reducing subsea fields cost.

Under the terms of the contract, Aker Solutions’ strengths in subsea production and processing systems will be combined with Baker Hughes’ expertise in well completions and artificial-lift technology to offer reliable, integrated in-well and subsea production solutions.

The solution will help mitigate risk, accelerate output and extend the life of subsea fields while boosting output and increasing recovery rates.

Additionally, the team will focus on advancing the well-intervention capabilities aimed to further optimize efficiency and reduce risks in subsea developments.

Aker Solutions executive chairman Øyvind Eriksen said that the alliance will boost the business of each company while helping customers unlock the vast values that come from subsea production.

"Subsea factory development is a key focus for Aker Solutions and the partnership with Baker Hughes will provide critical capabilities that will help us develop technologies to create a fully-functioning subsea production system which will improve recovery rates and lower costs for oil producers," Eriksen added.

With alliance core team to be co-located and based in Houston, Aker Solutions’ Svenn Ivar Fure and Baker Hughes’ Brage Johannessen will lead the alliance for their respective companies as general managers.

Baker Hughes chairman and chief executive officer Martin Craighead said, "By joining forces, Baker Hughes and Aker Solutions will identify and integrate the most effective combinations of in-well and subsea technologies, enabling greater production rates – efficiently and economically – from subsea fields."