BKR and AKAST Create New Offshore Drilling Co
Baker Hughes (NYSE: BKR) and Akastor ASA (Oslo: AKAST) have announced an agreement to create a new joint venture company that will bring together Baker Hughes’ Subsea Drilling Systems (SDS) business with Akastor’s wholly owned subsidiary MHWirth AS (MHWirth).
The new company will deliver a global full-service offshore drilling equipment offering that will provide customers with a broad portfolio of products and services, according to Baker Hughes, which noted that the new business will be owned 50-50 by Baker Hughes and Akastor.
Following the closing of the transaction - which is expected to occur in the second half of this year and is subject to customary conditions, including regulatory approvals - the new company’s operations will be managed from current offices in Houston, Texas, and Kristiansand, Norway. Merrill A. ‘Pete’ Miller, who has been in the oil and gas industry for over 40 years, will serve as chairman and chief executive officer.
“The oil and gas industry is rapidly evolving, and we are constantly looking at new and innovative ways of delivering value to our customers,” Neil Saunders, the executive vice president of Oilfield Equipment at Baker Hughes, said in a company statement.
“This company is the perfect fit between our respective portfolios and further transforms our core operations for long-term success, bringing complementary solutions to market and offering our customers a full offshore drilling equipment package,” he added.
Karl Erik Kjelstad, the chief executive officer of Akastor, said, “I would like to express sincere gratitude to the good work and dedication shown by the respective teams of Baker Hughes and Akastor for making this happen despite the current challenges caused by the global Covid-19 pandemic”.
“I strongly believe that this company will give a solid basis for both organizations to meet the current challenges in today’s market and to continue as a leader in developing advanced and efficient drilling solutions that support the industry’s transition towards more sustainable operations,” he added.
Baker Hughes’ SDS business is a division of the Oilfield Equipment segment of Baker Hughes and is headquartered in Houston. It provides integrated drilling products and services worldwide, with service and manufacturing facilities in 11 countries. MHWirth is a global provider of drilling solutions and services. The business has a global span covering five continents with offices in 13 countries.
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