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  • Baker Hughes and Akastor ASA collaborate to form Global Offshore Drilling Joint Venture

Baker Hughes and Akastor ASA collaborate to form Global Offshore Drilling Joint Venture
Oil & Gas | 02 March 2021

Baker Hughes and Akastor ASA announced an agreement to create a joint venture company to unite Baker Hughes' Subsea Drilling Systems business with Akastor's wholly-owned subsidiary, MHWirth AS. The JV will deliver a worldwide full-service offshore drilling equipment offering, providing customers with a wide portfolio of products and services.

The transaction will be resulting in a leading equipment provider with integrated delivery capabilities, monetary strength, and flexibility to address a full range of client needs. The Company will be owned 50-50 by Baker Hughes and Akastor, and following the closing of the transaction, the Company's activities will be managed from current workplaces in Houston, Texas, and Kristiansand, Norway. Merrill A. "Pete" Miller will be serving as the chairman and CEO. Miller has been serving the oil and gas industry for more than 40 years holding different influential positions including chairman, president and CEO of National Oilwell Varco.

The Company's broader scope of services will likewise provide a stronger establishment for future development, including the capacity to partake in the oil and gas industry's transition towards more energy-effective solutions, just as deploying technologies and service solutions for making the sector more competitive through expanded drilling efficiency.

Karl Erik Kjelstad, CEO of Akastor said that he would like to express sincere gratitude towards the good work and devotion shown by the respective teams of Baker Hughes and Akastor for making this happen despite the current difficulties brought about by the worldwide COVID-19 pandemic. He further added that he strongly believes that his Company will be giving “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 will support the industry’s transition towards more sustainable operations.

Kristian M. Røkke, chairman of Akastor said, “This transaction is a major step for MHWirth, and the transformation strategy announced in February 2019”. Furthermore, the Company will “offer customers a strengthened product offering and investors attractive value creation. This transaction will also allow Akastor to maximize, and ultimately realize, value to its shareholders.”

Neil Saunders, executive vice president of Oilfield Equipment at Baker Hughes said that the oil and gas industry is evolving at a rapid pace, and “we are constantly looking at new and innovative ways of delivering value to our customers”. He also added, that 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.”

MHWirth is a worldwide provider of advanced drilling solutions and services intended to offer clients a more secure, more effective and reliable alternative. MHWirth has a worldwide range covering five continents with offices in 13 nations.

Baker Hughes' SDS business is a subdivision of the Oilfield Equipment portion of Baker Hughes which is headquartered in Houston. SDS provides integrated drilling products and services around the world, with service and manufacturing facilities in 11 nations and a competitive portfolio, including world-class blowout preventer (BOP) systems, controls and riser equipment.

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