Aramco, Baker Hughes break ground on nonmetallics JV

Aramco and Baker Hughes on Dec. 8 announced the formation of Novel, a 50/50 joint venture (JV) to develop and commercialize a broad range of nonmetallic products for multiple applications in the energy sector. 

A ceremony was held at the project site to commence construction, which was attended by Aramco’s Ahmad A. Al Sa'adi, Aramco's senior vice president of Technical Services, and Lorenzo Simonelli, chairman and CEO of Baker hughest.

Both companies signed agreements in July 2019 to create such a JV.

“Nonmetallic products are reshaping the industries and products we all depend on because they are more reliable, cost effective, and offer sustainability benefits."
— Ahmad A. Al Sa'adi

"The partnership with Baker Hughes reinforces our commitment to expanding the use of innovative nonmetallic materials in our operations to drive efficiency and reduce maintenance and replacement costs, while also positively impacting the Kingdom’s economic development through job creation and local expertise,” said Al Sa'adi.

Novel’s new facility is being developed at King Salman Energy Park (SPARK), in Saudi Arabia’s Eastern Province. SPARK is a 50-square-kilometer energy city mega-project, which will position Saudi Arabia as a global energy, industrial and technology hub. Initially, the facility will produce onshore nonmetallic pipelines -– including reinforced thermoplastic pipes (RTP) –- from composite materials.  

Nonmetallic products are being deployed in a variety of industries, from the oil and gas sector to automotive, building and construction, packaging and renewables. In addition to being more sustainable, these advanced materials make them lighter than their conventional counterparts and resistant to corrosion.

New opportunities

The JV, which is based on a shareholders agreement signed in February this year during Aramco’s fifth In-Kingdom Total Value Add (iktva) Forum and Exhibition, aligns with Aramco’s strategy to seek new opportunities in oil-based products. 

This not only offers performance benefits but also aims to reduce carbon emissions. It also supports Saudi Arabia’s efforts to expand its commercial ecosystem and promote domestic investment. 

The new facility will not only create jobs, it will also help foster growth of an emerging and innovative sector in alignment with Saudi Vision 2030.  

Neil Saunders, executive vice president of Oilfield Equipment at Baker Hughes, said: “As an energy technology company, we are investing for growth in strategic areas like nonmetallics, and our deep background in nonmetallic product development will benefit a wide range of industries. Aramco’s vision to expand its product development in the region aligns with our vision to support innovation and manufacturing in Saudi Arabia.”