RECENTLY, Baker Hughes, a GE company, announced that the transaction combining GE’s oil and gas business with Baker Hughes has been completed.

In an interview with Saudi Gazette, Nick Nawfal, vice president BHGE: Saudi Arabia Geo-Market, explains the value-add that BHGE will bring to the Saudi oil and gas sector. Nick has over 27 years’ experience in the oil field with extensive experience in drilling and well constructions.

Excerpts from the interview:

Q: Tell us about the merger: What is the announcement all about?

A: Announced first in October 2016, Baker Hughes and GE’s oil and gas business have now completed the merger transaction to form Baker Hughes, a GE company (BHGE), which is now listed on the New York Stock Exchange. BHGE is the first and only company to bring together industry-leading equipment, services and digital solutions across the entire spectrum of oil and gas development. We have created a powerhouse in the oil and gas industry through the entire value chain. Together, BHGE brings over 125 years of experienced talent in the industry with a mindset of continuous improvement to serve customers in over 120 countries.

Q: What is the value that it brings? Why was such an organization important?

A: We created BHGE because oil and gas customers need to withstand volatility, work smarter and bring energy to more people. We assist our customers in driving productivity, while minimizing costs and risks. BHGE has proven technologies and experience with the spirit of a startup, and our leadership team looks forward to quickly demonstrating the strengths of the new company.

Q: What is the value addition it will bring for Saudi Arabia?

A: As a full-stream company, our focus is on enabling our customers to achieve higher levels of productivity, and achieving greater cost efficiencies, reducing the cost per barrel, which in turn positively benefit the industry. We are helping our partners not just in new fields but also in brownfield ventures, monitoring wells, and enabling them to achieve higher levels of productivity. Further, through advanced data analytics, we can help increase production and operational efficiency, while reducing downtime. There are various other related aspects too that will benefit the industry —including power generation, where we can create long-term value for our partners in the Kingdom.

Q: What will be the role of BHGE in Saudi Arabia?

A: We will help our customers acquire, transport and refine hydrocarbons more efficiently, productively and safely, with a smaller environmental footprint and at lower cost per barrel. No other company brings together capabilities across the full value chain of oil and gas activities — from upstream to midstream to downstream. Our leading technology and access to the “GE Store” of knowledge, experience and research mean that we can bring new solutions to market faster.

Q: What are the future plans for the Kingdom? Are you announcing any new deals?

Drawing on the long-term presence of GE and Baker Hughes in the Kingdom, BHGE brings a strong history of partnerships and presence. We have long-term initiatives that contribute significantly the oil and gas ecosystem in the region such as the Pressure Control Manufacturing Facility at MODON. Its capacity has tripled in the past year to manufacture all ranges of wellhead equipment to the highest specifications. Our Drill Bit Manufacturing Plant in Saudi also delivers industry-leading polycrystalline diamond compact (PDC) bits to the rest of the Middle East, which are made entirely in the Kingdom. We will continue to strengthen our operations, and support the goals of our partners to achieve unprecedented levels of efficiency and productivity.

Q: How do you view the region’s oil and gas sector and the oil price fluctuations?

A: While oil price changes are cyclical, the recent trends have underlined the need for operators – across the supply chain – to strengthen their operational efficiency and maximize productivity. That is the big opportunity that BHGE, with its physical and digital technologies bring, and which will be the big trend for 2017. — SG