Earlier in July there was the final sign-off on the merger of Houston’s Baker Hughes with General Electric’s (GE's) oil and gas division, in a US$32 billion deal.
The combination of Baker Hughes with GE Oil & Gas will result in the world’s second-largest energy services company, called Baker Hughes, a GE company (BHGE). The deal will leave GE, based in Boston, with 62.5% of the combined Baker Hughes. Baker Hughes and GE Oil and Gas have combined to form the world’s first “full stream” company, covering upstream, midstream and downstream customers. BHGE will bring together integrated services, equipment and digital solutions that they hope will enhance productivity, minimise risks and lower costs across the entire spectrum of oil and gas development.
The GE and Baker Hughes deal was struck months after Halliburton’s planned takeover of Baker Hughes fell apart.
Energy service companies like Baker Hughes have been reeling from a two-year slump in global oil prices, which pushed the value of service company stock down. Service companies were among the hardest hit, laying off thousands of workers and ending up with idle equipment.
Baker Hughes and GE both have existing operations in Trinidad. When EnergyNow spoke with representatives from Baker Hughes in Trinidad, they confirmed that they hoped that this combination would allow BHGE to help its customers acquire, transport and refine hydrocarbons more efficiently, productively and safely, with a smaller environmental footprint and at lower cost per barrel. It remains to be seen how this merger will affect the Trinidad and Tobago and Caribbean region energy services market.