EU commission greenlights JV with Baker Hughes / Composite plastic pipes for oilfield applications / Sabic takeover in Q2?
A 50:50 joint venture planned by the Saudi Aramco Development Company (Sadco), a subsidiary of Saudi Aramco (Dhahran / Saudi Arabia;, and US pipeline system manufacturer and energy specialist Baker Hughes (Houston, Texas;, has been cleared by the European Commission. The joint venture will operate construction and operation of manufacturing facilities for the production of non-metallic, plastic composite pipes for oil and gas applications.

Baker Hughes supplies composite flexible pipes such as “Aptara” pipes for deepwater applications (Photo: Baker Hughes)
The first plant, to be built in Saudi Arabia’s “King Salman Energy Park” at a cost of USD 110m, will produce reinforced thermoplastic pipes for customers in the Middle East. An MoU for the JV facility was signed by the two companies in summer 2019. At that time, Aramco said it had deployed more than 5,000 km of non-metallic pipes.

Saudi Aramco’s participation in the JV is said to be aimed at promoting the use of reinforced plastic pipes, which consume less energy and are less carbon intensive compared to conventional steel pipes. This reflects the oil giant’s strategy to support R&D in lower carbon intensity applications. Aramco is also part of the “Non-metallic Innovation Centre” ( in Cambridge / UK, a collaboration with R&D organisation TWI (Cambridge; and oil company Adnoc (Abu Dhabi / UAE;

In November 2019, Baker Hughes broke ground on its first chemical production facility in Saudi Arabia. Located in PlasChem Park in Jubail Industrial City, the company said the plant will produce its full portfolio of chemical services and technology solutions for the hydrocarbon production, transmission, processing and petrochemical industries. Ethylene oxide and propylene oxide feedstock will be supplied by Sadara Chemical (Dhahran;, the joint venture between Saudi Aramco and Dow (Midland, Michigan / USA;, via pipeline under a 20-year agreement.

In other merger news, Reuters recently reported Saudi Aramco as saying its plans to acquire a 70% stake in petrochemical giant Sabic (Riyadh / Saudi Arabia; – see of 03.03.2020) are set to close in the second quarter. Aramco said it is intending to make an announcement “in due course.”
18.05.2020 [245063-0]
Published on 18.05.2020

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