A broad range of non-metallic products for multiple applications in the energy sector will be developed and commercialised through a 50-50 joint venture between Aramco and Baker Hughe, which has been named Novel, the two companies announced on Tuesday at a ceremony to mark the launch.
The event was attended Aramco’s Senior Vice President for Technical Services Ahmad Al Sa’adi and Baker Hughes Chairman and CEO Lorenzo Simonelli.
A memorandum of understanding (MOU) to create a non-metallics joint venture was signed between the two companies in July of 2019 while the formal launch of the new entity was made this week. King Salman Energy Park, in Saudi Arabia’s Eastern Province is the place where the two companies are developing Novel’s new facility. This park is a 50-square-kilometer energy city megaproject that Saudi Arabia hopes will help the country to become a global hub for a energy, industrial and technology. Onshore non-metallic pipelines – including reinforced thermoplastic pipes (RTP) – from composite materials will be produced initially at the new facility, the companies said.
A shareholders agreement signed in February this year during Aramco’s 5th In-Kingdom Total Value Add (IKTVA) Forum & Exhibition formed the basis of the joint venture. The companies said that the objective of the joint venture is aligned to the current business strategy of Aramco of identifying new opportunities in oil-based products which are not only able to deliver performance benefits but also can help to bring down carbon emissions of the company. This new venture also is in line with the efforts of Saudi Arabia to expand its commercial ecosystem and promote domestic investment. The company believe that the new venture will help to generate growth of an emerging and innovative sector in line with Saudi Arabia’s Vision 2030 in addition to creating many new jobs.
“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,” said Aramco’s Senior Vice President for Technical Services, Ahmad Al Sa’adi.
“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,” said Neil Saunders, Executive Vice President, Oilfield Equipment, Baker Hughes.
A large variety of industries, ranging from the oil and gas sector to automotive, building and construction, packaging and renewable energy sectors, currently use non-metallic products. These advanced materials help to make equipment lighter than their conventional counterparts and resistant to corrosion in addition to being more environmentally sustainable.
(Source:www.businesswire.com)
The event was attended Aramco’s Senior Vice President for Technical Services Ahmad Al Sa’adi and Baker Hughes Chairman and CEO Lorenzo Simonelli.
A memorandum of understanding (MOU) to create a non-metallics joint venture was signed between the two companies in July of 2019 while the formal launch of the new entity was made this week. King Salman Energy Park, in Saudi Arabia’s Eastern Province is the place where the two companies are developing Novel’s new facility. This park is a 50-square-kilometer energy city megaproject that Saudi Arabia hopes will help the country to become a global hub for a energy, industrial and technology. Onshore non-metallic pipelines – including reinforced thermoplastic pipes (RTP) – from composite materials will be produced initially at the new facility, the companies said.
A shareholders agreement signed in February this year during Aramco’s 5th In-Kingdom Total Value Add (IKTVA) Forum & Exhibition formed the basis of the joint venture. The companies said that the objective of the joint venture is aligned to the current business strategy of Aramco of identifying new opportunities in oil-based products which are not only able to deliver performance benefits but also can help to bring down carbon emissions of the company. This new venture also is in line with the efforts of Saudi Arabia to expand its commercial ecosystem and promote domestic investment. The company believe that the new venture will help to generate growth of an emerging and innovative sector in line with Saudi Arabia’s Vision 2030 in addition to creating many new jobs.
“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,” said Aramco’s Senior Vice President for Technical Services, Ahmad Al Sa’adi.
“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,” said Neil Saunders, Executive Vice President, Oilfield Equipment, Baker Hughes.
A large variety of industries, ranging from the oil and gas sector to automotive, building and construction, packaging and renewable energy sectors, currently use non-metallic products. These advanced materials help to make equipment lighter than their conventional counterparts and resistant to corrosion in addition to being more environmentally sustainable.
(Source:www.businesswire.com)
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