Baker Hughes Oil and Gas Service Company. The head of the company

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Describing the activities of the corporation he heads in Russia, Martin Craighead, chairman of the board of directors and head of the American company Baker Hughes, said that our country is one of the largest oil and gas producers and exporters in the world. In addition, it has huge untapped hydrocarbon reserves. Baker Hughes' interest in Russia is based on these business fundamentals.

Among the largest

One of the largest oil and gas companies in the world "Baker Hughes" was founded at the beginning of the last century in the United States. Today, the total number of employees of the manufacturing giant is about 30 thousand people working around the globe. The largest exploration projects to identify oil and gas deposits, the latest technologies for their production - this is all Baker Hughes. Subsidiaries of the company provide equipment for the development and drilling of wells not only for themselves, but also for partners in more than 120 countries of the world.

Today, the giant includes several powerful associations, including such world-famous ones as Baker Petrolight, Centrilift, INTEK and others. In addition to the discovery and development of deposits of deposits of valuable fuel resources, the company's specialists evaluate the parameters of the reservoirs, develop new technologies for the efficient extraction of raw materials. Over the course of a century, conquering new territories and entering into partnerships with other giants of the oil and gas industry, Baker Hughes has become one of the three largest global companies working in this direction.

From creators to followers

In the 10s of the last century, inventors W alter Sharp and Howard Hughes developed a roller-cone drill bit, unique for those times. Keeping his invention in the strictest confidence, he conducted two tests, one of which was a failure. However, the second one showed that the new device is able to turn the idea of oil producers about the technology of drilling wells.

A year later, the entrepreneurs received a patent for their invention and founded the Sharp-Hughes Tool Company in Texas. With the death of W alter Sharp in 1912, Hughes took over the business and renamed the company the Hughes Tool Company. It happened three years after Sharp's death.

In the same years, in the same place, in the United States, another company was founded - Baker International. Its founder was the inventor Baker, who developed a cable for drilling that is unique in its properties. He received a patent for this discovery in 1907. And by 1928 the futurethe oil giant gave his offspring a new name - Baker OilTools, Inc. Thirty years after the death of Baker, who died in 1956, his company entered a new phase of its development by merging with the Hughes Tool Company. The combined entity was named Baker Hughes.

Absorption and merger

By combining their assets, the two oil giants dominated the world market for many years. To keep this bar and further, new infusions were needed. In 2014, Baker Hughes entered into merger talks with one of the world's largest oil and gas services corporation, Halliburton. The latest technologies developed by Halliburton, which employs about 70,000 people, could contribute to a more powerful development of Baker Hughes.

Both companies showed interest in the deal, hoping to create the most powerful force capable of leading the global oil and gas market. Baker Hughes was even willing to make a lucrative deal by taking over its company from the Halliburton Corporation. The amount announced in the press release was almost $35 billion. However, six months after the start of takeover negotiations, Halliburton announced the termination of the deal as unprofitable for itself. BakerHughes had to look for a new partner.

Baker Hughes Assets

Specialists in the design and development of gas and oil fields, equal to those working in this organization, can boast of a rare company. They also determine the most effective technologyfield processing of certain formation gas deposits, the required number of drilling rigs in the field and solve a number of other important production problems.

With a highly qualified workforce and state-of-the-art production equipment, one of America's leading mining companies is able to count on cooperation with many corporations in the world. Baker Hughes's particular interest extends to the nation's rich fuel resources. The once leading corporations in these countries eventually became part of the American oil giant. But the main backbone of the company was made up of American firms. At various times, Baker Hughes was joined by Elder Oil Tools, a leading manufacturer of components for drilling rigs, Milchemand Newpark, a developer of drilling fluids, Centrilift, a supplier of lifting equipment, and many other corporations. Until 2017, Martin Craighead was Chairman and CEO of Baker Hughes.

Geography of representative offices

During its century of existence, Baker Hughes has been steadily increasing its technological and economic strength by reducing production costs and increasing profitability. The largest market for the company's products is the United States of America, where its headquarters is also located in the state of Texas. However, Baker Hughes towers are located all over the world. The Corporation is actively developing fields in the North Sea, Latin America, Asia-Pacific, the Middle East, the Caspian, the Mediterranean,off the coast of West Africa.

The most significant subsidiaries of the company with their own representative offices, as well as research centers are located in Aberdeen and Hartlepool (UK), Kuala Lumpur (Malaysia), Pescara (Italy), Celle (Germany), Aktau (Kazakhstan), Dubai (UAE). But most of them are in the USA and Russia.

On the map of Russia

Several Russian regions at once fell into the zone of interests of Baker Hughes when the company began to expand its zone of influence on the oil and gas market, developing new geographical territories. Tyumen, Orenburg, Moscow, Noyabrsk, Nizhnevartovsk are the cities where the company's offices are located. And of course, the American holding, which pays special attention to its own developments and owns many research centers, could not ignore Novosibirsk, which is famous throughout the world for its unique scientific base. Almost the main assets of the company located in our country are concentrated in this Russian region. In Novosibirsk, one of the divisions of the American giant, Baker Atlas, is most active. Also, a large multidisciplinary base is deployed on Sakhalin.

The company's subsidiaries operating in Russia are registered both here and abroad, mainly in the USA. So, JSC Baker Hughes was "registered" in our capital. Moscow has attracted American partners with the headquarters of leading Russian oil, gas and chemical companies located here. And in the United States, the company "Baker Hughes Russia" is registered.inc", whose name speaks for itself.

Mutually beneficial partnership

The start of vigorous activity in Russia began for the American giant in the distant 70s of the last century with the supply of oil and gas equipment for Soviet enterprises. Subsequently, our Western partners turned their interests to the exploration and production of raw materials, gradually increasing their activity in this direction and developing contacts. Baker Hughes is currently focused on the comprehensive development of its activities in the Russian regions, especially in Siberia.

For many years, the American holding only provided the construction of horizontal, multilateral wells to Russian organizations, connecting to them only at the last stage of development. The technologies used in this process were developed specifically for local conditions. They made it possible to penetrate to the reserves of raw materials located deep in hard rocks. At first, the company's specialists were involved in the development of oil fields, over the years they were connected to gas production.

New merger

In early 2017, two of the most powerful American corporations announced a merger through the takeover of Baker Hughes by General Electric, a concern specializing in the production of industrial and military equipment. The joint organization was supposed to include GE's subsidiary, GE Oil & Gas, focused on mechanized gas production. In a joint press release, it was announced that, by combining its assets and spreading to 120 states of interest to them, the companyforecasts to increase total revenue to $32 billion over the next year.

The upcoming deal was approved unanimously by the boards of directors of both companies. And by July 2017, the agreement was signed. Under its terms, 62.5% of the shares of the combined corporation became the property of the GE Company. Its headquarters are located in Texas, in the city of Houston, as well as in the capital of Great Britain - London. After the announcement of the successful conclusion of the transaction, the company's shares rose in price. The projected increase in profits began to bear fruit.

Distribution of roles

Infrastructure and media firm General Electric has breathed new life into Baker Hughes. Drilling companies in the United States, the Asia-Pacific region, the Mediterranean, the Middle East and other regions where the oil and gas giant has its "daughters" are aimed at an early reconstruction of installations, which will lead to more production and development of raw materials.

The merger press release spelled out the expected distribution of roles on the corporation's unified board of directors. The post of its chairman was assigned to GE CEO Jeff Immelt. GE Oil & Gas CEO Lorenzo Simonelli is set to take over as president and CEO of the combined company, while Martin Craighead, Chairman and CEO of Baker Hughes, will take over as Vice Chairman. Initially, prior to the merger, both boards supported the respective appointments.

Out of competition

On average, after the merger, the value of GE shares, and hence Baker Hughes, increased slightly, but in 2018 it should increase by $ 0.04, and by 0.08 by 2020. All shareholders of the combined corporation following the conclusion of the transaction, they increased their personal assets, to a greater extent so far this has affected the owners of the oil and gas company. Each security was valued at $17.50. In addition, they will get a share of 37.5% in the combined company. By 2020, all shareholders of GE Company will experience a significant increase in profits in their bank accounts.

Before the merger, Baker Hughes was one of the three strongest corporations in the world supplying equipment and technologies for the oil and gas industry. What the company does after the merger with GE will become clear in the coming months, since not much time has passed since the merger of the two world's leading corporations. There will be no radical change in the type of activity. However, the number of regions of its influence may change.