Baker Hughes partners in the UAE’s net-zero drive

Abu Dhabi

Zaher Ibrahim, Baker Hughes’ vice-president for Europe, the Middle East and Africa, talks to The Energy Year about how as an energy technology company, Baker Hughes serves the needs of the market and contributes to the UAE’s goal of maximising energy security, affordability and sustainability. Baker Hughes conducts business in more than 120 countries.

How has Baker Hughes reinvented itself to become a technology company serving the needs of the market?
Baker Hughes has managed to navigate both the pandemic and supply chain challenges relatively well. Amid the crisis, we took a step back and strategically planned how we can continue to take energy forward. Our strategy is focused on transforming our core capabilities to ensure better service quality and operational excellence as well as looking at growth opportunities and exploring new frontiers that can help us and our customers drive the energy transition on our journeys towards net zero.
We simplified our organisation to enhance profitability and positioned ourselves for growth by creating two separate business segments (Oilfield Services & Equipment and Industrial & Energy Technology), which helps us better meet customer needs and produce solutions in the rapidly evolving energy and industrial markets.
We also have regional hubs focused on driving customer intensity by providing holistic solutions that help create value. As an energy technology company, we support the energy needs of NOCs and IOCs worldwide.
As of today, we offer an array of energy technologies and solutions across the entire value chain. We are aligned with the goals and vision that UAE is driving as we focus on maximising energy, driving efficiency and minimising emissions.

How is the company contributing to the UAE’s goal of maximising energy and minimising emissions?
In the UAE, we work closely with ADNOC, with the aim of helping them achieve their 5-million-bopd capacity benchmark by 2027, which we believe is achievable due to ADNOC’s right leadership and vision. We are taking organic and inorganic steps to grow in the technological arena so that we can bring the latest technology to the UAE.
Additionally, as a 5% shareholder in ADNOC Drilling, Baker Hughes is supporting ADNOC Drilling’s transformation into an integrated drilling and well construction company by providing its latest and most innovative technologies to support ADNOC’s production targets. We are now transferring the latest technology to ADNOC Drilling to help them optimise the rate of penetration and increase efficiency.
In this technological quest, carbon reduction solutions are key. We have made a series of acquisitions of companies that are leading the way in the areas of CCUS, hydrogen and emissions management. Our capabilities, portfolio and experience make us the right partner to support the UAE’s net-zero targets. Today, we are working closely with our partners across the country to drive the energy transition.

How important is gas for Baker Hughes and what key solutions does it provide?
Natural gas is core for us. We believe gas is a transition fuel that can support a more sustainable energy future. In the UAE, we are present across the whole natural gas value chain. In the upstream space, for instance, we continue to provide the latest technologies from drilling to well completion. In addition to this, we provide surface pressure control wellheads that can manage high-pressure optimisation, and optimal gas production rates.
Apart from our E&P activities, we also compress, burn and produce power from gas, being key players in the area of turbo-compressor technology and modular systems. Therefore, we are involved in every aspect of the gas landscape as we understand it is a crucial transitional energy shaping the present and future of the Emirates.
We are keen to play an important role in the Ghasha sour gas mega-project as this will be a game-changer for the country as well as the Fujairah LNG terminal. Efforts are being made to develop this play and first gas is expected by 2025. We are also very well positioned in the LNG space, holding a reputable market share in LNG both in this country and globally.
For instance, we are strong in modular solutions for LNG, which minimise installation risks and reduce on-site time and costs by around 30%. Here we offer solutions such as 1-million-tonne-per-year range LNG modules, centrifugal compressors, gas turbines and aeroderivative gas turbines.

Tell us about your contract with ADNOC for the manufacturing of surface wellheads, tree systems and liner hanger systems.
In Q4 2021, ADNOC awarded us a major contract for the manufacture, supply, storage and servicing of surface wellhead and tree systems with our local partner Al Ghaith Oilfield Supplies & Services Company. The contract covers ADNOC’s onshore and offshore fields for the next 10 years, as well as a long-term service contract to cover the repair, maintenance and spares for the project’s equipment. Parallel to this, we were also awarded a contract to manufacture, supply, store, install and service liner hanger systems over five years with local partner Uni-Arab Engineering & Oilfield Services.
The contract will leverage Baker Hughes’ in-country workshop and further supports the UAE’s emphasis on local manufacturing through ICV [in-country value]. We plan to leverage ICV by bringing in local human capital and rolling out an important campaign of Emiratisation. You see, the decision to invest in manufacturing capability via this new manufacturing plant in Abu Dhabi – which will serve the whole region – shows how critical ADNOC is for us, and our commitment to the Emirates.

How important is Baker Hughes’ collaborative approach in harnessing new technology to serve the UAE’s clean energy future?
In November 2022, we signed an agreement with ADNOC to explore collaboration opportunities around home-grown innovation and R&D for new technologies that can help drive a sustainable energy future in the UAE.
Moreover, this alliance aims to support the development of technology proofs of concept, technology scale-ups and pilots, while exploring the feasibility of their deployment across key projects at ADNOC. With it, we are creating a platform where we can drive our climate technology solution business in the country, and then partner with ADNOC on different work streams.
We believe COP28 will be a pivotal moment for the energy industry to showcase our role in supporting the climate change agenda. We believe all sectors can play a role in driving sustainability and the energy sector has a vital role to play; we are fully committed to partner with all the different players in-country to ensure a more sustainable energy future leveraging our latest technologies. With COP28 coming in the UAE, we are focused today on executing on projects that support the climate change agenda and support the UAE’s net-zero targets by 2050. This includes focusing on cleaner energy projects.
Additionally, we believe that there is no path to net zero without partnership and collaboration. The energy industry was built on partnership and service. Today, we know this matters more than ever. We believe it will take energy producers, technology and service providers, energy buyers, policymakers, and the community at large working closely together to achieve our collective ambitions.

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