BAKER Hughes Incorporated and Aker Solutions together will develop technology for production solutions that will boost output, increase recovery rates and reduce costs for subsea fields, the companies have announced.
The non-incorporated alliance will combine Aker Solutions’ strengths in subsea production and processing systems with Baker Hughes’ expertise in well completions and artificial-lift technology, as well as aiming to advance the industry’s well-intervention capabilities.
Baker Hughes chairman Martin Craighead said that by joining forces, Baker Hughes and Aker Solutions would identify and integrate the most effective combinations of in-well and subsea technologies, enabling greater production rates from subsea fields.
“The single-digit recovery rates currently being achieved at many of these fields don’t support a sustainable business model,” he said.
The structure of the alliance provides the flexibility for each company to offer any products and services to design the best solution for customers’ production challenges, Baker Hughes said.
Aker Solutions chairman Oyvind Eriksen said the commitment would strengthen the business of each company.
“Subsea factory development is a key focus for Aker Solutions and the partnership with Baker Hughes will provide critical capabilities that will help us develop technologies to create a fully-functioning subsea production system which will improve recovery rates and lower costs for oil producers.”
Baker Hughes’ Brage Johannessen and Aker Solutions’ Svenn Ivar Fure will lead the alliance for their respective companies as general managers.
The alliance core team will be co-located and based in Houston.