General Electric and Baker Hughes join up for ‘first and only fullstream oil and gas company’
Baker Hughes and General Electric Oil and Gas have finalised the transaction combining their businesses, creating what they claim to be the world’s first and only fullstream oil and gas company.
The new company formed from the combination, BHGE, aims to be the first and only to bring together industry leading equipment, services and digital solutions across the whole spectrum of oil and gas development.
“Starting today, BHGE 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,” the company said in a statement, issued on 3 July 2017.
Lorenzo Simonelli, president and CEO of Baker Hughes, said: “Disruptive change is the oil and gas industry’s new normal. 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 minimising costs and risks.”
Simonelli continued, “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.”
Jeffrey Immelt, chairman and CEO of GE, said: “BHGE can help our customers be more productive in any cycle, especially today’s. It’s a smart deal for our combined customers, shareholders and employees. Lorenzo and his team are world-class leaders and will focus on accelerating the Company’s capability to extend the digital framework in ways oil and gas customers have never seen before. The completion of the transaction marks a new era in the industry, and I am extremely proud of our team’s focus, dedication and diligence, which resulted in the completion of this combination in just eight months.”