Saudi Arabian Industrial Investments Company (Dussur) and US energy technology company Baker Hughes have signed Articles of Association agreement for their proposed oilfield and industrial chemicals joint venture in Saudi Arabia.
In March 2022, Baker Hughes had announced that it inked an agreement with Dussur to form a JV company focused on providing oilfield and industrial chemicals focused on the needs of the Kingdom.
The company said the JV, owned 51 percent by Baker Hughes and 49 percent by Dussur, would include its existing chemical blend plant in Dammam and manufacturing facility in PlasChem Park, Jubail.
The statement said Baker Hughes will contribute its existing infrastructure, personnel, and contracts within Saudi related to oilfield and industrial chemicals under the terms of the agreement. Upon close, the JV will continue to operate under the Baker Hughes brand and Baker Hughes will exclusively participate in the Saudi chemicals market through the JV.
The transaction is expected to close in the third quarter of 2022, the statement said.
In a separate statement in March, Dussur said JV with a production capacity of 30,000 metric tonnes would produce demulsifiers, scale inhibitors, corrosion inhibitors, Biocides to cater to the needs of refineries, and oilfield service companies in Saudi Arabia.
(Writing by SA Kader; Editing by Anoop Menon)