Baker Hughes has signed two new agreements aimed at supporting oil and gas development and expanding natural gas infrastructure in Venezuela. This agreement includes a strategic collaboration with the state-owned company PDVSA, focusing on the production, processing, and potential export of LNG.
Development of Natural Gas Infrastructure
Under this collaboration, Baker Hughes will work with PDVSA, Lindsyca, and Volcrom LNG to identify and advance infrastructure projects across the natural gas value chain in Venezuela. The planning includes assessing necessary updates to support the production, processing, transportation, and commercialization of gas.
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Focus on Domestic Needs and Exports
Short-term efforts will focus on the infrastructure needed to meet PDVSA's domestic gas needs and increase domestic natural gas supply, including for electricity generation. In the long term, these companies intend to assess new midstream and LNG infrastructure with open access that could help Venezuelan producers sell additional gas resources and potentially export LNG.
Lorenzo Simonelli, Chairman and CEO of Baker Hughes, stated: "The central goal of these partnerships is to develop an integrated gas value chain capable of converting Venezuela's significant natural gas resources into reliable domestic supply and future export opportunities." This collaboration remains a framework for cooperation and requires separate definitive agreements and internal approvals.
Additionally, Baker Hughes recently signed a memorandum of understanding with New Stratus Energy to support future oil and gas developments in Venezuela. This collaboration may include Baker Hughes technologies in subsurface evaluation, drilling, production, processing, digital operations, and emissions reduction.
Baker Hughes announced that these two agreements could provide a framework for the connection between upstream resource development and midstream infrastructure, gas commercialization, and ultimately LNG commercialization. The company has been active in Venezuela's energy sector for over 60 years and includes more than 1,200 oil production systems, artificial lift equipment, flexible pipeline infrastructure, and about 240 turbomachinery units across 23 sites.
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