Baker Hughes, an energy technology company, and PJSC LUKOIL, one of the largest vertically-integrated oil & gas companies in the world, have signed an agreement to deepen their global collaboration. Announced during the St. Petersburg International Economic Forum (SPIEF), the agreement will leverage Baker Hughes’ diversified technologies combined with PJSC LUKOIL’s deep industry expertise and extensive international production chain to increase efficiencies, reduce emissions and raise productivity for the oil and gas industry and support the energy transition.

The two companies will explore several key collaborations, including:

  - An artificial lift technology partnership to test Baker Hughes’ electric submersible pumps (ESP) with PJSC LUKOIL’s leading energy efficient Permanent Magnet Motors (PMM). Baker Hughes ESP technologies deliver the broadest operating range in the industry, with unsurpassed levels of efficiency, reliability and performance, while PJSC LUKOIL’s PMM technology enables a reduction in energy consumption by 15-20% compared to current artificial lift processes and is a leader in the Russian market. The two companies will share technology expertise, joint training and business opportunities, and aim to launch joint pilot projects in Egypt, Iraq, Russia and the U.S. within the next five years.

  - An integrated approach for LUKOIL’s carbon reduction and energy efficiency initiatives. The companies will explore emissions mapping and abatement projects throughout the production chain at LUKOIL Overseas projects, encompassing reserves of more than 1.5 billion barrels of oil equivalent in 11 countries. Baker Hughes will also provide consulting for deployment of leading technologies to detect and reduce emissions as well as enhance oil production efficiencies for flaring, combustion and additional applications. The first pilot is expected to be launched in Uzbekistan.

  - A cooperation to produce Baker Hughes’ spoolable composite pipes in Russia, leveraging PJSC LUKOIL’s polymer production to provide an efficient and lower carbon alternative to traditional steel pipes. With Baker Hughes’ expertise in flexible pipe solutions, the new pipes could enhance operational efficiency and scale up emissions reduction successes for PJSC LUKOIL while supporting local manufacturing capabilities.

“We are delighted to have signed this landmark collaboration with LUKOIL that will advance our efforts to lead the energy transition in the region,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes. “We look forward to building upon our long-term relationship with a forward-thinking partner, collaborating in strategic areas to help LUKOIL achieve further success. I look forward to sharing our expertise and technologies together through an integrated approach essential to accelerate our journey towards net-zero emissions.”

About Baker Hughes

Baker Hughes (NYSE: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and with operations in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet.

About LUKOIL

LUKOIL (MCX: LKOH) is one of the largest oil & gas vertical integrated companies in the world accounting for over 2% of crude production and circa 1% of proved hydrocarbon reserves globally. LUKOIL enjoys a full production cycle to control the entire value chain from upstream to downstream. LUKOIL employs over 110 thousand people who join their efforts and talents to secure the Company’s market leadership.