Baker Hughes Unit Sees APM As Energy Transition Ingredient
In February of this year, Rigzone reported that Baker Hughes (NYSE: BKR) had reached a deal to acquire the industrial asset management provider ARMS Reliability. To obtain additional insights about the deal’s significance, Rigzone recently interviewed Ed J. Boufarah, vice president of Bently Nevada, which is a unit of Baker Hughes’ Digital Solutions business. Read on for Boufarah’s perspective.
Rigzone: How is this acquisition breaking new ground for Baker Hughes and Bently Nevada, not to mention the broader oilfield services sector?
Ed J. Boufarah: The acquisition of ARMS Reliability brings a broad range of industrial asset management solutions and expertise to build on Baker Hughes’ and Bently Nevada’s portfolio and service capabilities. Bently Nevada has been a pioneer in condition monitoring and asset protection field since 1961 and today we are still growing, with technology and services, just opening our seventh remote monitoring services center, in fact.
The addition of ARMS Reliability further strengthens our long history in condition monitoring and asset protection by providing Baker Hughes and Bently Nevada customers with a full spectrum of APM (asset performance management) services. These will help our customers to enhance operational efficiencies, extend asset lifecycles, and reduce non-productive downtime. This is of direct value to customers across a range of industrial sectors, including oilfield services.
ARMS Reliability’s services and OnePM software will also integrate into Bently Nevada’s System 1 platform, which provides real-time and historical data for critical plant-wide asset health monitoring, protection, and reliability services. The acquisition advances our business strategy and helps us grow in ways that support customers.
A recent example of this is the role of Bently Nevada’s services in an integrated Baker Hughes partnership with Petrobras (NYSE: PBR), where our existing APM capability played a key role in a full-scale digital transformation program, which provides enterprise coverage across 6,000 or so critical or essential machines. The ARMS Reliability acquisition will now enhance that offer and bring additional benefits to Petrobras.
Rigzone: What will adding ARMS mean for oil and gas industry clients?
Boufarah: APM services are deployed in some of the world’s most complex industrial sectors – like oilfield services. Research by the Asset Performance Management Market Global Forecast finds APM services have a big impact – 30% reduction in maintenance cost, up to a 75% decrease in machine breakdowns, and up to a 45% reduction in downtime by 2025.
At Bently Nevada, we are a world leader in condition monitoring and asset protection, and this acquisition expands our offer to also include asset strategy and industrial asset management. This means that for our oil and gas clients as well as our industrial customers such as mining, pulp and paper, and utilities, they can expect their assets to operate with maximum operational efficiency in one smart ecosystem.
Rigzone: From Baker Hughes and Bently Nevada’s standpoint, where do you expect to see commonality across these various industries? Where do you expect to see significant differences?
Boufarah: There are of course a lot of differences in terms of context and type of assets in different sectors. They do, however, have one important point in common – they all need the right data and insights to make informed decisions to protect and maximize their assets. This is where Bently Nevada comes in. We offer a plant-wide, holistic suite of machine condition monitoring and protection hardware, software, and services that help our customers achieve the highest level of asset reliability possible.
Rigzone: What does APM have to do with the energy transition, and how can it advance it?
Boufarah: The energy transition is a key concern not just for Baker Hughes, but our customers and partners as well, no matter the industry. For complex industrial sectors, measuring the performance of their assets and the ability to introduce measures to ensure maximum operational efficiency and safety, are essential steps in forming a fully informed energy transition strategy. Furthermore, Bently Nevada’s fleet of APM solutions are designed not only to improve operational performance and productivity across industrial plants, but to also reduce emissions through our Predictive Emissions Management Solutions – PEMS – as well as flare optimizations, all tied to our System 1 Industrial Asset management platform. By helping to accelerate the adoption of these digital technologies, like System 1, we are helping to accelerate the energy transition.
Rigzone: Would you like to add any comments?
Boufarah: The energy transition demands of the market, coupled with our customers’ focus on driving productivity and operational excellence out of existing asset install base, is leading to a rapid acceleration of our customers’ digital transformation journeys.
This acquisition is another way we are well-positioned to enable the digital transformation of our customers’ businesses. Our advanced technology and focus on condition monitoring and asset reliability management is enabling that change, and we are dedicated to supporting our customers, for today, for tomorrow, and for the next generation.
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