Baker Hughes Announces Local Management Buyout of its Oilfield Services Business in Russia

Rhea-AI Summary

Baker Hughes (NASDAQ: BKR) has agreed to sell its Oilfield Services business in Russia to the local management team, following its suspension of new investments in the region. The new entity will operate independently, assuming all assets, liabilities, and obligations of OFS Russia. The transaction is expected to close in the second half of 2022, pending local authority approval. Baker Hughes assures support for its employees and customers during the transition, continuing its commitment to operational integrity and compliance with applicable laws and sanctions.

Positive

• Sale of OFS Russia allows Baker Hughes to comply with sanctions and limit operational risks.
• The local management team will assume all assets and liabilities, ensuring continuity.

Negative

• Withdrawal from the Russian market could lead to revenue loss from the Oilfield Services sector.

MOSCOW, Aug. 01, 2022 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR) has signed an agreement to sell its Oilfield Services business in Russia (“OFS Russia”) to its local management team. The agreement follows on the Company’s previously announced suspension of new investments for its Russia operations and commitment to comply with appliable laws and sanctions.

The new business will operate independently of Baker Hughes – including an independent brand – and it will assume all current OFS Russia assets, liabilities and commercial obligations.

The transaction is expected to close in the second half of 2022, subject to the approval of local authorities. The Company is committed to supporting its employees throughout this process and ensuring an orderly transfer for its customers and relevant parties.

About Baker Hughes
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions for energy and industrial customers worldwide. Built on a century of experience and conducting business 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. Visit us at bakerhughes.com.

For more information, please contact:

Media Relations – Global:
Thomas Millas
+1 713-879-2862
thomas.millas@bakerhughes.com

Media Relations – Russia:
Marina Oplachko
+7 985 441-93-00
marina.oplachko@bakerhughes.com

Investor Relations:
Jud Bailey
+1-281-809-9088
investor.relations@bakerhughes.com

FAQ

What business did Baker Hughes sell in Russia?

Baker Hughes sold its Oilfield Services business in Russia.

When will the sale of Baker Hughes' Oilfield Services business in Russia close?

The transaction is expected to close in the second half of 2022, subject to local authority approval.

What will happen to Baker Hughes' employees in Russia after the sale?

Baker Hughes is committed to supporting its employees during the transition.

How will Baker Hughes' sale of its Russian business affect its financials?

The sale may result in a revenue loss from the Oilfield Services sector.