Aker Solutions and Baker Hughes Inc. received necessary regulatory approvals for the Subsea Production Alliance announced in April 2014.
The two companies agreed to form the alliance a few months ago develop technology for production solutions designed to boost output, increase recovery rates and reduce costs for subsea fields.
The non-incorporated alliance combines Aker’s strengths in subsea production and processing systems with Baker Hughes' expertise in well completions and artificial-lift technology to deliver integrated in-well and subsea production solutions that will help mitigate risk, accelerate output and extend the life of subsea fields.
The new alliance team will also focus on advancing the industry's well-intervention capabilities to further optimize efficiency and reduce risks in subsea developments.
In April, Øyvind Eriksen, Aker Solutions' executive chairman said, “Our joint commitment will strengthen the business of each company and help our customers unlock the vast values that come from subsea production. Subsea factory development is a key focus for Aker Solutions and the partnership with Baker Hughes will provide critical capabilities that will help us develop technologies to create a fully-functioning subsea production system which will improve recovery rates and lower costs for oil producers."
Baker Hughes' chairman and chief executive officer, Martin Craighead, followed with, “Deepwater subsea fields have so far been characterized by low recovery rates, and new discoveries in deeper and more hostile environments are making these fields even more costly to develop. The single-digit recovery rates currently being achieved at many of these fields don't support a sustainable business model. By joining forces, Baker Hughes and Aker Solutions will identify and integrate the most effective combinations of in-well and subsea technologies, enabling greater production rates - efficiently and economically - from subsea fields."
Aker’s Svenn Ivar Fure and Baker Hughes' Brage Johannessen will lead the alliance for their respective companies as general managers. The alliance core team will be co-located and based in Houston.
Image of Aker's drilling simulator in a dome solution from Aker
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