Baker Hughes has signed two strategic agreements aimed at revitalizing Venezuela’s energy infrastructure across the natural gas value chain and expanding the country’s oil and gas production.
In Caracas, the company signed a strategic alliance agreement with Petróleos de Venezuela S.A. (PDVSA), Lindsayca, and Fulcrum LNG Inc. to revitalize and expand Venezuela’s natural gas infrastructure. Baker Hughes also recently signed a separate memorandum of understanding (MOU) with New Stratus Energy Inc. to support the development of future oil and gas prospects.
Together, the agreements establish a framework to link upstream resource development with midstream infrastructure, gas monetization, and liquefied natural gas (LNG) commercialization.
“A central objective of these partnerships is the development of an integrated gas value chain capable of transforming Venezuela’s substantial natural gas resources into reliable domestic supply and future export opportunities, including the potential to export the first LNG molecules produced in Venezuela,” said Lorenzo Simonelli, chair and chief executive officer (CEO) of Baker Hughes. “Venezuela holds tremendous potential to become a significant contributor to the evolving global energy landscape, and these agreements are designed to bring world-class resource opportunities, project development, energy infrastructure and technologies, and financing expertise together to realize this.”
“This strategic alliance with PDVSA is a historic opportunity to maximize the use and value of Venezuela’s natural gas resources, and it reflects the capabilities and expertise of Fulcrum, Lindsayca, and Baker Hughes in developing fully integrated gas value chains, from upstream production to end markets,” said Jesus Bronchalo, CEO of Fulcrum LNG.
“In the near term, we will work closely with PDVSA to identify and execute the infrastructure developments and upgrades needed to meet its internal gas requirements, while pursuing opportunities to supply natural gas to the domestic market to support reliable power generation for Venezuela and its people,” said Bronchalo. “Over the medium and long term, we will evaluate the development and financing of new open-access midstream and LNG infrastructure that gives PDVSA and other upstream operators solutions to monetize their gas, positioning Venezuela to become a key player in the global gas and LNG industry and helping meet growing world energy demand.”
Under the alliance with PDVSA, Lindsayca, and Fulcrum, the companies will combine Baker Hughes’ portfolio of energy solutions for oil and gas field development, gas infrastructure, and LNG with Lindsayca’s engineering, procurement, construction, and operational capabilities and Fulcrum’s expertise in midstream and LNG project development, financing, and market access.
The collaboration will focus on developing project-specific agreements and advancing the infrastructure needed to process, transport, commercialize, and potentially export Venezuelan natural gas.
The strategic alliance serves as a cooperation framework, with individual projects subject to separate definitive agreements, internal approvals by the participating companies, and applicable US sanctions and export-control requirements, including authorizations issued by the US Department of the Treasury’s Office of Foreign Assets Control.
Under its separate MOU with New Stratus Energy, Baker Hughes will support the development of future oil and gas prospects. The collaboration will draw on Baker Hughes’ integrated portfolio of subsurface, drilling, production, processing, digital, emissions-abatement, power-generation, oil and gas monetization, and LNG technologies to accelerate future project development.
Baker Hughes has supported Venezuela’s energy sector for more than 60 years. Its installed base in the country includes more than 1200 oil production systems, significant flexible pipe infrastructure, and approximately 240 turbomachinery units across 23 sites.
