Oilfield services giant Baker Hughes and Norway's Akastor on Monday said they would create a joint venture that will bring together Baker Hughes’ Subsea Drilling Systems (SDS) business with Akastor’s subsidiary, MHWirth AS (MHWirth).
MHWirth provides advanced drilling solutions and services, and Baker Hughes’ SDS business is a division of the Oilfield Equipment segment of Baker Hughes, headquartered in Houston, which provides integrated drilling products and services.
According to Baker Hughes and Akastor, the JV will deliver "a global full-service offshore drilling equipment offering that will provide customers with a broad portfolio of products and services."
"The transaction will result in a leading equipment provider with integrated delivery capabilities, financial strength, and flexibility to address a full range of customer priorities," the two companies said.
The joint venture firm will be owned 50-50 by Baker Hughes and Akastor, and following the closing of the transaction, its operations will be managed from current offices in Houston, Texas, and Kristiansand, Norway.
Merrill A. “Pete” Miller will serve as chairman and chief executive officer. Miller has been in the oil and gas industry for over 40 years holding various leadership roles including chairman, president, and chief executive officer of National Oilwell Varco.
The Company’s broader scope of services will also provide a more solid foundation for future growth, including the capability to participate in the oil & gas industry’s transition towards more energy-efficient solutions, as well as deploying technologies and service solutions to make the sector more competitive through increased drilling efficiency.
“The oil and gas industry is rapidly evolving, and we are constantly looking at new and innovative ways of delivering value to our customers,” said Neil Saunders, executive vice president of Oilfield Equipment at Baker Hughes. “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 transaction is subject to customary conditions, including regulatory approvals, and is expected to occur in the second half of 2021.