Baker Hughes has signed two agreements to support Venezuela’s natural gas infrastructure and future oil and gas development, with domestic supply and potential LNG exports among the objectives.
Announcing the agreements on October 5, the company said it had signed an alliance with PDVSA, Lindsayca and Fulcrum LNG in Caracas. It also recently signed a separate memorandum of understanding with New Stratus Energy to support future oil and gas prospects.
The gas alliance will initially focus on infrastructure needed to meet PDVSA’s internal gas requirements. Fulcrum LNG Chief Executive Jesus Bronchalo said the partners would also pursue opportunities to supply the domestic market for power generation.
Over the medium and long term, they will assess the development and financing of gas transport and LNG infrastructure that PDVSA and other producers could use to bring their gas to market.
Baker Hughes will contribute oilfield, gas processing and LNG technologies. Lindsayca will provide engineering, construction and operating expertise, while Fulcrum will contribute project development, financing and market access.
Baker Hughes Chairman and Chief Executive Lorenzo Simonelli said the partnerships aim to support reliable domestic supply and future exports, including the potential for Venezuela’s first locally produced LNG exports.
The separate agreement with New Stratus Energy covers support for future prospects through Baker Hughes’ drilling, production, processing and other energy technologies.
The company described the gas alliance as a cooperation framework. Individual projects will require separate definitive agreements, internal approvals and compliance with applicable US sanctions and export controls, including authorisations from the Office of Foreign Assets Control. The announcement did not specify project costs, capacity or completion dates.