Saudi Aramco awards $175 million contract to Baker Hughes, a GE company to boost production of Haradh and Hawiyah gas fields

Saudi Aramco has awarded a $175 million contract to Baker Hughes, a GE company (NYSE: BHGE) to drive enhanced production at the Haradh and Hawiyah gas fields, underlining the strong local partnerships of BHGE in the Kingdom.

Part of Al-Ghawar, the world’s largest oilfield, Haradh and Hawiyah gas fields play a key role in supporting the Kingdom’s focus on leveraging its gas resources, complementing Saudi Aramco’s plans to double gas production to 23 billion standard cubic feet per day in the next decade. This is also in line with the Kingdom’s goal to increase the contribution of gas from 50 to 70 percent of the overall energy mix, the highest among the G20 countries.

BHGE will supply 27 high-efficiency gas compression trains consisting of compressors, gearboxes, electric motors and loop oil systems for the extraction of gas from the Haradh and Hawiyah to feed the fields’ existing gas plants for processing, contributing to increased operational efficiency.

This marks another significant turbomachinery win for BHGE in Saudi Arabia, and further underlines its commitment to IKTVA, with several Saudi-based suppliers benefitting from the contract. BHGE will work with local suppliers to help deliver the equipment order, contributing to increased localization and technology transfer. This in turn supports a Saudi-based small and medium enterprises (SME) supply chain that will boost the economy.

The contract will be delivered by BHGE’s multimodal facilities in the Kingdom which will undertake the packaging, assembly, testing and servicing of the turbomachinery equipment, further supporting the development of high quality jobs for Saudi professionals and marking the expansion of the existing facilities. BHGE will also work with Saudi suppliers that support the oil and gas industry through the distribution of advanced equipment.

Abdulaziz Al-Abdulkarim, Vice President of Procurement & Supply Chain Management Saudi Aramco, said: “Through our major projects we are supporting the goals of Saudi Vision 2030 that focuses on localizing our industry and creating new jobs for Saudi talents. The contract with BHGE has a strong in-Kingdom value creation component that will benefit the development of a ‘Made in Saudi’ supply chain for the oil and gas sector. The Gas Compression trains to be supplied by BHGE will further enhance the efficiency of our gas fields, bringing more value to the economy.”

Rami Qasem, President & CEO, BHGE, MENAT and India, said: “With over 80 years of presence in the Kingdom, we are committed to supporting the oil and gas sector through our advanced equipment that brings greater operational efficiency and productivity to Saudi Aramco, our long-term partner. The contract also marks further localization of our operations by drawing on our global competencies to support the Saudi economy, with the gas compression trains manufactured in Italy and packaged here in Saudi. A portion of the testing and assembly will also be done in the Kingdom, with the support of Saudi SME partners, reinforcing our focus on developing the local supply chain in line with the IKTVA program of Saudi Aramco.”

With over 2,600 employees in the Kingdom, BHGE has a strong local presence marked by localized oilfield equipment manufacturing. BHGE has tripled the capacity of the manufacturing facility to meet the local demand of pressure control equipment, and with capability to repair and re-certify BOPs. BHGE’s Drill Bit Manufacturing Plant, which produces polycrystalline diamond compact (PDC) drill bits that are made entirely in the Kingdom, exports to over 40 countries worldwide.