In Caracas, the company signed a strategic alliance agreement with PDVSA, Lindsayca and Fulcrum LNG, Inc. to revitalize and expand the country’s natural gas infrastructure. Baker Hughes also recently signed a separate Memorandum of Understanding (MOU) with New Stratus Energy Inc. to support the development of future oil and gas prospects.
Together, these agreements establish an enterprise deal framework that can connect upstream resource development, midstream infrastructure, gas monetization, and LNG commercialization. This creates a pathway to unlock Venezuela’s significant natural gas potential.
“A central objective of these partnerships is the development of an integrated gas value chain capable of transforming Venezuela’s substantial natural gas resources into reliable domestic supply and future export opportunities, including the potential to export the first LNG molecules produced in Venezuela,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes. “Venezuela holds tremendous potential to become a significant contributor to the evolving global energy landscape, and these agreements are designed to bring world-class resource opportunities, project development, energy infrastructure & technologies, and financing expertise together to realize this.”
“This strategic alliance with PDVSA is a historic opportunity to maximize the use and value of Venezuela’s natural gas resources, and it reflects the capabilities and expertise of Fulcrum, Lindsayca and Baker Hughes in developing fully integrated gas value chains, from upstream production to end markets,” said Jesus Bronchalo, CEO of Fulcrum LNG, Inc.
“In the near term, we will work closely with PDVSA to identify and execute the infrastructure developments and upgrades needed to meet its internal gas requirements, while pursuing opportunities to supply natural gas to the domestic market to support reliable power generation for Venezuela and its people. Over the medium and long term, we will evaluate the development and financing of new open-access midstream and LNG infrastructure that gives PDVSA and other upstream operators solutions to monetize their gas, positioning Venezuela to become a key player in the global gas and LNG industry and helping meet growing world energy demand,” Bronchalo said.
About the agreements
Under the alliance with PDVSA, Lindsayca and Fulcrum, the companies will combine Baker Hughes’ broad portfolio of industrialized energy solutions for oil and gas field development, gas infrastructure and LNG solutions, Lindsayca’s engineering, procurement, construction, and operational capabilities, and Fulcrum’s midstream and LNG project development, financing and market access. The collaboration will focus on developing project specific agreements, advancing critical infrastructure required to process, transport, commercialize, and export natural gas, for the first time in the history of Venezuela.
The alliance is a cooperation framework. Any specific project will be subject to separate definitive agreements, each party’s internal approvals, and applicable US sanctions and export control requirements, including authorizations issued by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC).
Through the MOU with New Stratus Energy, Baker Hughes will support the development of future oil and gas prospects. The partnership will leverage Baker Hughes’ integrated portfolio of subsurface, drilling, production, processing, digital, emissions abatement, power generation, oil and gas monetization, and liquefied natural gas (LNG) technologies to maximize resource recovery opportunities and accelerate future project developments.
Baker Hughes has supported Venezuela’s energy sector for more than 60 years. Its installed base in country includes more than 1,200 oil production systems, the largest artificial lift footprint, significant flexible pipe infrastructure, and approximately 240 turbomachinery units across 23 sites.
