Baker Hughes Completes GE Combination

GE completed its buyout of Baker Hughes Inc, merging it with its own oil and gas equipment and services operations to create the world's second-largest oilfield service provider by revenue.

Baker Hughes, a GE company, announced that the transaction combining GE’s oil and gas business with Baker Hughes is complete.

The new company is the first and only to bring together industry-leading equipment, services and digital solutions across the entire spectrum of oil and gas development, BHGE said.

BHGE said it will help its customers acquire, transport and refine hydrocarbons more efficiently, productively and safely, with a smaller environmental footprint and at lower cost per barrel. BHGE said it is focused on:

  • Providing a fullstream offering. BHGE said no other company brings together capabilities across the full value chain of oil and gas activities—from upstream to midstream to downstream. This portfolio positions BHGE to create new sources of value, improving productivity and project economics through integrated equipment and service offerings.
  • Combining physical and digital to increase reliability and uptime. Applying digital and advanced technologies to oil and gas could bring approximately 5% productivity improvements across the entire industry. BHGE will use cloud-based software, advanced manufacturing and brilliant factory solutions to help its customers capture some of this opportunity—reducing risk and improving productivity in their operations as well as its own.
  • Creating new ways to win. BHGE’s leading technology and access to the “GE Store” of knowledge, experience and research mean that it can bring new solutions to market faster. It deepens its competitive advantage through its long-standing local partnerships, creative business models, and access to financing.
  • Building on heritage to create a world-class culture. BHGE brings together over 125 years of experienced talent in the industry with a mindset of continuous improvement to serve customers in over 120 countries. Both Baker Hughes and GE have world-recognized commitments to integrity, innovation, simplification and diversity, and BHGE recommits to these principles.

“Disruptive change is the oil and gas industry’s new normal,” said Lorenzo Simonelli, president and CEO of Baker Hughes. “We created BHGE because oil and gas customers need to withstand volatility, work smarter and bring energy to more people. Our offering is further differentiated from any other in the industry across the value stream and enables and assists our customers in driving productivity, while minimizing costs and risks.

“BHGE has proven technologies and experience with the spirit of a startup, and our leadership team looks forward to quickly demonstrating the strengths of the new company. Our focus is on integrating our businesses quickly and seamlessly so we can drive long-term value for all of our stakeholders.”

The integration of the Russian businesses will be completed upon receipt of Russian regulatory approval.

BHGE said its global organization is designed to achieve business continuity, minimize disruption and meet and exceed performance objectives. It brings global scale and tailors its capabilities for the local needs of its customers. In numbers, that breaks down to:

  • ~70,000 people
  • Operations in more than 120 countries
  • Four product companies—Oilfield Services, Oilfield Equipment, Turbomachinery and Process Solutions, and Digital Solutions—and 24 product lines and segments
  • Dual headquarters in Houston, TX and London, UK meet and exceed performance objectives. It brings global scale and tailors its capabilities for the local needs of its customers. In numbers, that breaks down to:
  • ~70,000 people
  • Operations in more than 120 countries
  • Four product companies—Oilfield Services, Oilfield Equipment, Turbomachinery and Process Solutions, and Digital Solutions—and 24 product lines and segments
  • Dual headquarters in Houston, Texas, USA and London.
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