Baker Hughes has announced two strategic agreements to accelerate the revitalisation of Venezuela’s energy infrastructure.
The US services group signed a strategic alliance agreement with PDVSA, Lindsayca and Fulcrum LNG, Inc. to update and expand the country’s natural gas infrastructure.
It also recently signed a separate Memorandum of Understanding (MOU) with New Stratus Energy Inc. to support the development of future oil and gas prospects.
Together, these agreements establish a framework to connect upstream resource development, midstream infrastructure, gas monetisation and LNG commercialisation on a pathway to unlock the nation’s natural gas potential, according to Lorenzo Simonelli, Chairman and CEO of Baker Hughes.
“A central objective of these partnerships is the development of an integrated gas value chain capable of transforming Venezuela's substantial natural gas resources into reliable domestic supply and future export opportunities — including the potential to export the first LNG molecules produced in Venezuela,” said Simonelli.
“Venezuela holds tremendous potential to become a significant contributor to the evolving global energy landscape, and these agreements are designed to bring world-class resource opportunities, project development, energy infrastructure and technologies and financing expertise together to realise this.”
Baker Hughes has been engaged in Venezuela’s energy sector for more than 60 years.
Its work includes more than 1,200 oil production systems, the largest artificial lift footprint, significant flexible pipe infrastructure, and approximately 240 turbomachinery units across 23 sites.
Under the alliance with PDVSA, Lindsayca and Fulcrum, the group will combine Baker Hughes' broad portfolio of energy solutions, Lindsayca's engineering, procurement, construction and operational capabilities, and Fulcrum's midstream and LNG project development, financing and market access.
This collaboration will focus on developing project specific agreements and advance critical infrastructure required to process, transport, commercialise and export gas, for the first time in the history of Venezuela.
“This strategic alliance with PDVSA is a historic opportunity to maximise the use and value of Venezuela's natural gas resources,” said Jesus Bronchalo, CEO of Fulcrum LNG, Inc.
"In the near term, we will work closely with PDVSA to identify and execute the infrastructure developments and upgrades needed to meet its internal gas requirements, while pursuing opportunities to supply natural gas to the domestic market to support reliable power generation for Venezuela and its people,” Bronchalo added.
“Over the medium and long term, we will evaluate the development and financing of new open-access midstream and LNG infrastructure that gives PDVSA and other upstream operators solutions to monetise their gas, positioning Venezuela to become a key player in the global gas and LNG industry and helping meet growing world energy demand.”
Through the MOU with New Stratus Energy, Baker Hughes will also support the development of future oil and gas prospects.
