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.
