Aramco, Baker Hughes establishes ‘Novel’ to develop and commercialize non-metallic products for the energy sector

Aramco and Baker Hughes have established Novel, a 50/50 Joint Venture to develop and commercialize a broad range of non-metallic products for multiple applications in the energy sector.

The two companies signed a memorandum of understanding to create a non-metallics JV in July 2019.

Novel’s new facility is being developed at King Salman Energy Park (SPARK), in Saudi Arabia’s Eastern Province.

SPARK is a 50-square-kilometer energy city megaproject which will position Saudi Arabia as a global energy, industrial and technology hub. Initially, the facility will produce onshore non-metallic pipelines – including reinforced thermoplastic pipes (RTP) – from composite materials.

The JV is based on a shareholders agreement signed in February this year during Aramco’s 5th In-Kingdom Total Value Add (IKTVA) Forum & Exhibition.

The JV aligns with Aramco’s strategy to seek new opportunities in oil-based products, which not only offer performance benefits but also aims to reduce carbon emissions.

It also supports Saudi Arabia’s efforts to expand its commercial ecosystem and promote domestic investment. The new facility will not only create jobs, it will also help foster growth of an emerging and innovative sector in alignment with Saudi Arabia’s Vision 2030.