Saudi Aramco has given a stimulation and well-testing contract to GE’s Baker Hughes (BHGE) as part of its efforts to boost production from its conventional fields in Saudi Arabia.
Saudi Aramco produces about 10 billion barrels of oil each day (Credit: Wikipedia/Eagleamn)
BHGE is expected to help the state-controlled Saudi Aramco to optimize production from its new and existing wells across the country.
Saudi Aramco upstream senior vice president Mohammed Al Qahtani said: “The contract further reinforces our integration efforts across conventional fields in Saudi Arabia, helping maintain capacity and meet domestic and global demand.
“We are pleased to work with BHGE as a partner with proven expertise in country.”
Under the terms of the three-year contract, the GE subsidiary will be responsible for providing a comprehensive well services solution, which includes all cased-hole wireline logging, perforation, well testing, fracturing, stimulation and associated intervention services among others.
The company said that by integration of discrete products, services and capabilities into a single offering, Saudi Aramco will be able to reduce time, costs and complexity and at the same time boost efficiency.
BHGE’s contract has the option of two one-year extensions with the project likely to begin this month.
The company expects the contract-related work to create over 200 new engineering, field services and project management roles. Further, it will indirectly support 300 existing jobs.
BHGE chairman and CEO Lorenzo Simonelli said: “The contract underpins the strength of our portfolio and demonstrates our ability to deliver comprehensive well solutions to improve productivity, reliability and efficiency for our customers.
“As a long-term partner supporting the Kingdom’s oil and gas sector, we are committed to bringing advanced technology and service solutions that will help deliver significant levels of upstream productivity and support Saudi Arabia’s strategy to increase gas production for both local consumption and export.”
In September, the GE subsidiary won an integrated services contract from Saudi Aramco for its Marjan oilfield located offshore Saudi Arabia. Under the contract, BHGE is responsible for drilling services, coiled tubing services and drilling fluids engineering services for the Marjan field.
In another development in the Middle East, BHGE had signed a deal in October to acquire a 5% stake in ADNOC Drilling from Abu Dhabi National Oil Company (ADNOC) for $550m.