Baker Hughes is laying a legal foundation in Venezuela's gas sector before it has to prove anything gets built. On Oct. 5 in Caracas, the company signed a strategic alliance with PDVSA, Lindsayca and Fulcrum LNG to revitalize and expand the country's natural gas infrastructure. It also signed a separate memorandum of understanding with New Stratus Energy to support development of future oil and gas prospects. Venezuela's interim president, Delcy Rodriguez, was among those at the signing, according to Baker Hughes.

What the alliance covers

Baker Hughes chairman and CEO Lorenzo Simonelli said the partnerships are meant to connect upstream gas production, midstream infrastructure, gas monetization and LNG commercialization in one agreement, which the company calls an "enterprise deal framework." He said the aim includes the potential to export "the first LNG molecules produced in Venezuela."

Who does what

Baker Hughes brings its oil and gas field, gas infrastructure and LNG technology. Lindsayca, a Houston company that has worked in Venezuela for four decades through its Lindsay C.A. unit, established in 1986, contributes engineering, procurement and construction experience. Fulcrum LNG chief executive Jesus Bronchalo said Fulcrum will work with PDVSA in the near term on the infrastructure upgrades needed to meet domestic gas needs, then look at financing new midstream and LNG infrastructure over the medium and long term. Fulcrum uses the same open-access financing model it applies to gas projects on the Gulf Coast.

Baker Hughes' footprint in the country

Baker Hughes has worked in Venezuela for more than 60 years. Its installed base there includes:

  • More than 1,200 oil production systems
  • What the company calls its "largest artificial lift footprint"
  • A large network of flexible pipe infrastructure
  • About 240 turbomachinery units across 23 sites

The New Stratus MOU

The separate MOU with New Stratus Energy covers future oil and gas prospects. Baker Hughes said the work will draw on its subsurface, drilling, production, processing, digital, emissions-reduction, power-generation and LNG technology lines.