On Heels of Award, BHGE Supports IKTVA with New Industrial Plant and Five-Year Roadmap
There’s no doubt that efficiently producing Saudi Arabia’s oil and gas is a top priority for Saudi Aramco, but so too is developing local manufacturing, industrial services and high-value jobs. Baker Hughes, a GE company (BHGE), is helping in all these areas.
The most recent recognition of this: BHGE received the 2018 IKTVA Excellence Award for ‘Best in Supplier and Small and Medium Enterprises (SME) Development’. BHGE has more than 1,350 Saudi suppliers in its supply chain and has helped create more than 5,300 indirect jobs.
The award was announced during the 2018 IKTVA Forum, at which BHGE signed a Memorandum of Understanding with Saudi Aramco highlighting BHGE’s five-year roadmap to expand its footprint in the Kingdom in support of the IKTVA (In-Kingdom Total Value Add) program. Saudi Aramco’s IKTVA aims to achieve 70% local content, create thousands of local jobs and increase exports in the Kingdom by 2021.
The MoU supports BHGE’s efforts to further drive local job creation and develop a broader base of local suppliers.
Also during the Forum, BHGE carried out the official inauguration of its 30,000sqm multi-modal facility, located in the 2nd Industrial City in Dammam (MODON). The plant manufactures, fabricates, packages and tests oil and gas turbomachinery equipment and components. It is the first facility of its kind for BHGE outside it’s Turbomachinery & Process Solutions headquarters in Italy.
More than 90% of the multi-modal facility employees are Saudis, while the facility has more than 20 local suppliers supporting its operations. Many of the components produced by these Saudi workers are being made in the region for the first time.
The facility will support the needs of the Haradh and Hawiyah gas compression project in Saudi Arabia, with plans to expand in the future to serve the Middle East. The facility can accommodate the assembly of any size and kind of turbomachinery equipment including heavy duty and aeroderivative gas turbines, steam turbines and centrifugal compressors. In addition, a high-pressure testing bunker is built within the facility for hydrostatic and leakage tests.
Across more than 10 facilities providing manufacturing, maintenance and R&D in the Kingdom, BHGE’s 2,700 employees support the Kingdom’s energy sector. The company also has over 1,350 Saudi suppliers in its supply chain and has helped create more than 5,300 indirect jobs.
BHGE’s Saudi footprint includes an assembly, maintenance & overhaul workshop, a drill bits manufacturing facility that exports to over 40 countries; a completions and well intervention facility; a pressure control facility that is BHGE’s largest and one of the most advanced in the region — with the manufacturing done entirely in the Kingdom; the Dhahran Technology Center that has over 15 R&D projects and has filed over 30 patents; an artificial lift facility that partners with 120 local suppliers; a turbomachinery processes and services facility; and one of the first and largest chemical blending plants in the Kingdom.