The agreement follows on Baker Hughes’ previously announced suspension of new investments for its Russia operations and “commitment to comply with appliable laws and sanctions.” (Source: Cristian Storto / Shutterstock.com)
Baker Hughes Co. agreed to sell its Russian oilfield services business as part of the Houston-based company’s previous commitment to exit the country following Russia’s invasion of Ukraine.
According to an Aug. 1 release, a local management team had agreed to buy out Baker Hughes’ oilfield services (OFS) business in Russia for undisclosed terms. Baker Hughes said the business unit will operate independently of Baker Hughes—including an independent brand—upon closing expected in the second half of 2022.
Last month, Baker Hughes reported a nonoperating loss of $426 million related to its oilfield services unit in Russia at the end of the second quarter, according to a Reuters report. Revenue from the unit also declined 51% sequentially to $60 million, leading to “meaningful cost under-absorption,” the company said in July.
The sale of its Russian oilfield services unit is subject to the approval of local authorities. Baker Hughes said it is committed to supporting its employees throughout this process and ensuring an orderly transfer for its customers and relevant parties.
The agreement follows on the company’s previously announced suspension of new investments for its Russia operations and “commitment to comply with appliable laws and sanctions,” the company added in a release.
Reuters contributed to this report.
Recommended Reading
Belcher: Energy Sector Grapples with Looming Labor Crisis
2024-12-09 - The U.S. needs approximately 400,000 new engineers each year moving forward but is currently only able to fill about one-third of the engineering positions available through at least 2030.
LNG, Crude Markets and Tariffs Muddy Analysts’ 2025 Outlooks
2024-12-12 - Energy demand is forecast to grow as data centers gobble up more electricity and LNG liquefaction capacity comes online in North America, but gasoline demand may peak by 2025, analysts say.
Belcher: Heed the Harsh Lessons from Europe’s Net-Zero Perils
2024-12-30 - The EU’s aggressive climate stance is wreaking economic havoc and mounting regulations could hurt the U.S. LNG industry.
NatGas Shouldering Powergen Burden, but Midstream Lags, Execs Warn
2025-02-14 - Expand Energy COO Josh Viets said society wants the reliability of natural gas, but Liberty Energy CEO Ron Gusek said midstream projects need to catch up to meet demand during a discussion at NAPE.
NextEra Energy, GE Vernova Partner to Bolster US Grid
2025-01-27 - The CEO of NextEra Energy, which has entered a partnership with GE Vernova, said natural gas, renewables and nuclear energy will be needed to meet rising power demand.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.