The joint venture between Saudi Aramco Development Company and Baker Hughes is aimed at manufacturing non-metallic and composite materials to be used in oil and natural gas drilling activities.
Baker Hughes has two affiliates operating in Turkey, as part of a market sharing arrangement, the company needs an official permission to form a joint venture with a foreign company which will operate in MENA region where Turkey is one of the 19 countries, according to international commercial law.
The two companies had requested Turkey’s permission to operate in the MENA region on April 16 of this year.
After finalizing its decision in September, the watchdog formally announced it on Monday.
The joint venture will produce non-metallic and composite materials for use in oil and natural gas drilling activities and manufacture defense-related hardware only for the use in MENA region.
Saudi Aramco and Baker Hughes will each own 50% of the joint venture. While the production facility will be built in Saudi Arabia, its exact location has yet to be determined.
(Anadolu Agency, December 1, 2020)