Riyadh – Mubasher: The Saudi Arabian Oil Company (Saudi Aramco) and Baker Hughes have formed Novel, a 50/50 Joint Venture (JV) to develop and commercialise a broad range of non-metallic products for multiple applications in the energy sector.

A ceremony was held at the project site to commence construction. It was attended by Aramco’s Senior Vice President for Technical Services, Ahmad Al Sa’adi, and Baker Hughes’ Chairman and CEO, Lorenzo Simonelli, according to a press release on Tuesday.

In July 2019, both companies signed a memorandum of understanding (MOU) to create a non-metallic JV.  Novel’s new facility is being developed at King Salman Energy Park (SPARK).

Furthermore, the JV aligns with Aramco’s strategy to seek new opportunities in oil-based products. In addition, it supports Saudi Arabia’s efforts to expand its commercial ecosystem, while promoting domestic investment, creating jobs, and helping foster growth of an emerging and innovative sector in line with the Vision 2030.

“Non-metallic products are reshaping the industries and products we all depend on because they are more reliable, cost-effective and offer sustainability benefits. 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,” Al Sa’adi said.

Executive Vice President, Oilfield Equipment, Baker Hughes, Neil Saunders, commented, “As an energy technology company, we are 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.”