Aramco and Baker Hughes have begun construction on a non-metallic joint venture, at the King Salman Energy Park (SPARK).
The site is in Saudi Arabia’s Eastern Province.
The 50:50 venture will be called Novel Non-Metallic Solutions Manufacturing. The companies held a ceremony at the site to mark construction beginning. Baker Hughes’ chairman and CEO Lorenzo Simonelli and Aramco’s senior vice president for technical services Ahmad Al Sa’adi attended.
The start of work at Novel follows a memorandum of understanding (MoU) on the topic, signed in July 2019. The companies signed a shareholder agreement in February during an Aramco forum on in-Kingdom Total Value Add (IKTVA).
The new facility will initially focus on onshore non-metallic pipelines, including reinforced thermoplastic pipes (RTP), produced from composite materials. The companies will invest $110 million in Novel, they said in February.
“Non-metallic products are reshaping the industries and products we all depend on because they are more reliable, cost effective and offer sustainability benefits,” said Aramco’s Al Sa’adi.
“The partnership with Baker Hughes reinforces our commitment to expanding the use of innovative non-metallic materials in our operations to drive efficiency and reduce maintenance and replacement costs, while also positively impacting the Kingdom’s economic development through job creation and local expertise.”
Baker Hughes’ executive vice president for oilfield equipment Neil Saunders said the company was “investing for growth in strategic areas like non-metallics, and our deep background in non-metallic product development will benefit a wide range of industries.
“Aramco’s vision to expand its product development in the region aligns with our vision to support innovation and manufacturing in Saudi Arabia.”
Aramco sees non-metallic materials as playing a major role in its future. This work cuts life-cycle costs while also reducing corrosion and carbon emissions.