Energy technology company Baker Hughes and Akastor, a Norwegian oil-services investment company, have agreed to create a joint venture company for offering global offshore drilling solutions.

The 50:50 joint venture will combine the subsea drilling systems (SDS) business of Baker Hughes with MHWirth, a wholly-owned subsidiary of Akastor.

According to Baker Hughes, the joint venture will be a major equipment provider with integrated delivery capabilities, strong finances, and flexibility to handle various priorities of customers.

The offshore drilling solutions joint venture’s operations will be handled from Baker Hughes’ current offices in Houston, and Kristiansand in Norway with Merrill A. Miller as its chairman and CEO.

Karl Erik Kjelstad – CEO of Akastor said: “I would like to express sincere gratitude to the good work and dedication shown by the respective teams of Baker Hughes and Akastor for making this happen despite the current challenges caused by the global COVID-19 pandemic.

“I strongly believe that this Company will give a solid basis for both organizations to meet the current challenges in today’s market and to continue as a leader in developing advanced and efficient drilling solutions that support the industry’s transition towards more sustainable operations.”

MHWirth is engaged in providing advanced drilling solutions and services. The Norwegian company has presence across five continents with offices in 13 countries.

Baker Hughes’ subsea drilling systems business, which is headquartered in Houston, is a unit of the company’s oilfield equipment segment. The unit offers integrated drilling products and services across the world with service and manufacturing facilities across 11 nations.

Its portfolio includes blowout preventor systems, controls, and riser equipment.

Neil Saunders – executive vice president of Oilfield Equipment at Baker Hughes said: “The oil and gas industry is rapidly evolving, and we are constantly looking at new and innovative ways of delivering value to our customers.

“This Company is the perfect fit between our respective portfolios and further transforms our core operations for long-term success, bringing complementary solutions to market and offering our customers a full offshore drilling equipment package.”

The closing of the joint venture agreement, which is subject to regulatory approvals and customary conditions, is likely to occur in the second half of this year.

  Akastor, Akastor ASA, Baker Hughes, Houston, Karl Erik Kjelstad, Kristiansand, Merrill A. Miller, MH Mirth AS, Neil Saunders, Norway, Oil and gas industry news, Oil and gas news, Texas, USA