Baker Hughes has signed two strategic agreements aimed at revitalising Venezuela’s energy infrastructure and expanding production across the natural gas and oil sectors.

In Caracas, the energy technology company signed an alliance with PDVSA, Lindsayca and Fulcrum LNG to develop Venezuela’s natural gas infrastructure.

Separately, Baker Hughes signed a memorandum of understanding with New Stratus Energy to support the development of future oil and gas prospects.

The agreements create a framework connecting upstream resource development with midstream infrastructure, gas monetisation and LNG commercialisation, with the aim of unlocking Venezuela’s natural gas potential.

“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, chairman and 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 & technologies, and financing expertise together to realize this.”

Under the alliance, the companies will combine Baker Hughes’ energy technologies with Lindsayca’s engineering, procurement, construction and operational capabilities and Fulcrum’s midstream and LNG development, financing and market expertise.

The focus will be on infrastructure needed to process, transport, commercialise and potentially export natural gas.

“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, Inc.

"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. 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," Bronchalo said.

The alliance remains a cooperation framework, with individual projects subject to definitive agreements, internal approvals and applicable US sanctions and export controls, including OFAC authorisations.

Baker Hughes said it has supported Venezuela’s energy sector for more than 60 years, with an installed base including more than 1,200 oil production systems and approximately 240 turbomachinery units across 23 sites. -OGN/TradeArabia News Service