Baker Hughes signs agreements to expand Venezuela gas infrastructure

By Reuters News

- Baker Hughes BKR.O said on Monday it has signed an agreement with Venezuelan state oil company PDVSA, engineering firm Lindsayca and LNG developer Fulcrum LNG to develop natural gas infrastructure in the South American country.

The US oilfield services company also entered into a separate agreement with New Stratus Energy to support future oil and gas projects in the country.

Here are more details:

  • Baker Hughes said the agreements create a framework to tie the country's upstream resource development, midstream infrastructure, gas monetization and LNG commercialization.

  • Under the first alliance, Baker Hughes, Lindsayca and Fulcrum will combine their capabilities to develop the infrastructure needed to process, transport, commercialize and potentially export natural gas.

  • Any projects developed under the alliance would be subject to separate definitive agreements, internal approvals and applicable US sanctions and export-control requirements, including authorizations from the US Treasury Department's Office of Foreign Assets Control, Baker Hughes said.

  • Baker Hughes had earlier this year said it sees a significant revenue opportunity in Venezuela, with the main considerations for operating there being safety and conditions for employees, and clarity on legal and regulatory frameworks.

  • Venezuela's oil industry has been state-controlled for two decades, since the government expropriated assets of foreign companies such as US giants ExxonMobil XOM.N and ConocoPhillips COP.N.

  • Chevron CVX.N is the only US major that retained continuous operations in the country, as a partner of PDVSA.

  • Financial terms of Baker Hughes' agreements were not disclosed.

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