Baker Hughes Nederland Holdings Acquires Equity in JOA
JOA announced today that Baker Hughes Nederland Holdings BV, an indirect subsidiary of Baker Hughes Incorporated (BHI), has acquired a 40% equity in the company. Under terms of the agreement, BHI will license and have unlimited access to JOA's JewelSuiteTM software, an integrated reservoir modeling tool that uses patented 3D gridding technology for building accurate reservoir models with ease. BHI will also fund a significant portion of the development required to incorporate some of BHI’s in-house engineering applications around the wellbore and its leading geomechanical technologies earlier acquired through GeoMechanics International (GMI).
"Our investment in JOA is a strategic move that gives us direct access to a leading innovative software tool," said Nathan Meehan, Vice President, Reservoir Technology, BHI. "Using the JewelSuite software, our consulting teams -- including Gaffney, Cline & Associates, RDS, Epic Consulting, and GMI -- will be better able to provide the most effective integrated solutions for the most complex reservoirs and development options. We also anticipate an opportunity for the JewelSuite software to become the integration platform for BHI's in-house technologies. Finally, by integrating technology from our INTEQ product line with the software, we can provide our clients with accurate and always up-to-date looks at their fields."
The JewelSuite software's unique patented 3D gridding technology provides the basis for a completely new way of integrated reservoir modeling. The Jewel grid -- with its orthogonal, vertically stacked cells -- has been recognized as particularly powerful when it comes to handling complex fields. While built with ease, JewelSuite models can also communicate reservoir complexity to reservoir simulators, giving the client unparalleled connectivity and superior accuracy in simulation results when compared to other industry packages.
"Uptake of our JewelSuite technology within the BHI organization will significantly extend our user base from operators of complex assets to highly trained and competitive consultants," said Gerard de Jager, CEO of JOA Oil & Gas. "We are in the process of training BHI's consulting groups, and we expect that they will be providing us with even more input to future development, while simultaneously showcasing JewelSuite's strengths to clients. Through our funded development agreement, BHI will help us to realize our vision of providing truly integrated and always up-to-date reservoir models, at scales from detailed wellbore neighborhoods to full-field geomechanical models, all in the same framework."
JOA Oil & Gas has 58 employees in 8 different locations. Gerard de Jager, JOA's CEO, will ensure that the funding made available through this equity sale will be used to fast-track planned expansion and further growth of the sales and support organization.