Posts tagged ‘Baker Hughes’
Baker Hughes Unveils New Multiphase Fluid Flowmeter
Baker Hughes has developed a multiphase flowmeter that combines downhole sensor technology with neural network capabilities to provide real-time, affordable flow rate estimates from wells produced with electrical submersible pump (ESP) systems. When properly calibrated and maintained, the Neuraflow™ multiphase flowmeter delivers flow rate estimates with a greater than 90% accuracy rate when compared with actual flow rate measurements.
Flow measurements are critical for optimizing reservoir performance and ESP system efficiency as well as diagnosing well and ESP system issues. However, direct measurement of multiphase flow rates is expensive and, therefore, typically performed only intermittently. Neuraflow, which is installed in the ESP surface variable speed drive (VSD), offers an affordable alternative to conventional direct flow monitoring techniques via real-time flow rate estimates. The Neuraflow device uses existing standard downhole measurements coupled with additional system measurements and learning algorithms to infer a flow rate based on known reservoir and fluid properties. This cost-effective solution measures flow at four separate downhole locations. The four flow measurements are compared and then used to calibrate the model for a high degree of accuracy.
“This is an important addition to our existing production measurement portfolio. Neuraflow meets a long-held customer need for accurate, affordable flow measurements,” noted Neil Harrop, president of Baker Hughes’ completions and production business segment. “This complements our expanding digital oilfield capability with real-time measurements that can make a significant difference in optimizing production.”
Baker Hughes Unveils WellLink Desktop System
Baker Hughes has introduced WellLink™ Desktop, a dynamic, secure system for automatic delivery of well data from the wellsite to the desktop.
As well and project complexities increase, advanced wellsite monitoring and analysis of well data allow for better asset management business decisions. WellLink Desktop quickly and accurately delivers the well data operators need to optimize production. The system eliminates the need to search through large amounts of data and manually download files of interest. The application also provides security through an encrypted data transfer scheme and by locking the application to a specific client and computer.
WellLink Desktop creates a data-transfer routine that is installed on a client’s computer to automate the data-transfer process via regular checks of the host Web service for new data files and to run a continuous audit of files already transferred. The program also enables clients to monitor progress of the automatic download, to pause and resume the download, and to manage the download traffic.
“The WellLink Desktop system is an important part of our remote operations infrastructure that streamlines well data delivery and maximizes its security,” noted Derek Mathieson, Baker Hughes president of products and technology. “WellLink Desktop works automatically and securely behind the scenes to simplify data gathering and synthesis so that clients can focus on core business issues.”
Baker Hughes Buys 40% Stake in JOA
JOA announced that Baker Hughes Nederland Holdings BV, a subsidiary of Baker Hughes Inc. (BHI), has acquired a 40% equity in the company. Under terms of the agreement, BHI will license and have unlimited access to JOA’s JewelSuiteTM software, an integrated reservoir modeling tool that uses patented 3D gridding technology for building accurate reservoir models. BHI will also fund a significant portion of the development required to incorporate some of BHI’s in-house engineering applications around the wellbore and its leading geomechanical technologies earlier acquired through GeoMechanics International (GMI).
“Our investment in JOA is a strategic move that gives us direct access to a leading innovative software tool,” said Nathan Meehan, VP Reservoir Technology, BHI. “Using the JewelSuite software, our consulting teams – including Gaffney, Cline & Associates, RDS, Epic Consulting and GMI – will be better able to provide the most effective integrated solutions for the most complex reservoirs and development options. We also anticipate an opportunity for the JewelSuite software to become the integration platform for BHI’s in-house technologies. Finally, by integrating technology from our INTEQ product line with the software, we can provide our clients with accurate and always up-to-date looks at their fields.”
The JewelSuite software’s unique patented 3D gridding technology provides the basis for a completely new way of integrated reservoir modeling. The Jewel grid, with its orthogonal, vertically stacked cells, has been recognized as particularly powerful when it comes to handling complex fields. While built with ease, JewelSuite models can also communicate reservoir complexity to reservoir simulators, giving users unparalleled connectivity and superior accuracy in simulation results when compared to other industry packages.
“Uptake of our JewelSuite technology within the BHI organization will significantly extend our user base from operators of complex assets to highly trained and competitive consultants,” said Gerard de Jager, CEO of JOA Oil & Gas. “We are in the process of training BHI’s consulting groups, and we expect that they will be providing us with even more input to future development, while simultaneously showcasing JewelSuite’s strengths to clients. Through our funded development agreement, BHI will help us to realize our vision of providing truly integrated and always up-to-date reservoir models, at scales from detailed wellbore neighborhoods to full-field geomechanical models, all in the same framework.”
JOA Oil & Gas has 58 employees in eight different locations. Gerard de Jager, JOA’s CEO, will ensure that the funding made available through this equity sale will be used to fast-track planned expansion and further growth of the sales and support organization.
Baker Hughes Launches Artificial Lift Monitoring Service
Baker Hughes has launched Centrilift Vision™, a real-time, artificial lift monitoring and optimization service. Centrilift Vision collects data from artificial lift operations and then provides clients the critical information necessary to optimize production and minimize field down time.
Centrilift Vision includes several differentiating features, including fuzzy logic alarming, daily exception reporting and advanced key performance indicator (KPI) tracking. All of these features allow operators to highlight and diagnose artificial lift issues and opportunities in real time, which ensures optimal production levels from artificially lifted wells and maximizes the life of the artificial lift system. Vision is easy to use and access while conforming to stringent data security standards, and combined with Baker Hughes’ downhole sensors, it provides a complete system to unlock the full potential of artificial lift completions.
“Vision is a breakthrough in artificial lift monitoring and optimization because we have closed the gap between the time a production-impacting event occurs and when it is recognized, diagnosed and repaired in the field,” said John Kenner, President of the Baker Hughes Centrilift product line. “This capability can dramatically reduce non-productive time.”
Baker Hughes to Acquire BJ Services in $5.5 Billion Transaction
Combines BJ Services’ Leading Pressure Pumping Business with Baker Hughes’ Diversified International Franchise Allows Combined Company to More Effectively Compete for Integrated Projects and Accelerate International Growth Cost Synergies of $75 Million in 2010 and $150 Million in 2011
HOUSTON, Aug. 31 /PRNewswire-FirstCall/ — Baker Hughes Incorporated (NYSE:BHI) and BJ Services Company (NYSE:BJS) today announced that their Boards of Directors have approved a definitive merger agreement, which represents a transaction value of $5.5 billion for BJ Services based on closing stock prices on August 28, 2009.
The agreement represents a premium to BJ Services stockholders of 16.3% over the closing price of BJ Services stock on August 28, 2009. Under the agreement, BJ Services stockholders will receive 0.40035 shares of Baker Hughes and cash of $2.69 in exchange for each share of BJ Services common stock. Upon closing, and reflecting the issuance of new Baker Hughes shares, BJ Services stockholders collectively will own approximately 27.5% of Baker Hughes’ outstanding shares.
“The transaction further enhances Baker Hughes’ position as a top-tier global oilfield services company,” said Chad C. Deaton, Baker Hughes chairman, president and chief executive officer. “BJ Services broadens our portfolio by adding products, technologies and talented people that are key to helping our customers unlock value in their reservoirs, particularly in unconventional gas and deepwater fields. It will better position us to drive international growth and to compete for the growing large integrated projects by incorporating pressure pumping into our product offering.
“Our two companies have highly complementary products and services with very little overlap. Baker Hughes has a long record of partnering with BJ Services on major projects. The proposed merger will make Baker Hughes a stronger, more efficient service provider for our customers worldwide, by integrating pressure pumping with Baker Hughes’ wide range of products and services.”
Baker Hughes expects to realize annual cost savings of approximately $75 million in 2010 and $150 million in 2011 as it eliminates redundant costs, consolidates facilities, and further rationalizes field costs. Baker Hughes expects the combination to be accretive to earnings per share in 2011.
The Baker Hughes Board of Directors will be expanded to include two BJ Services Board members.
BJ Services’ Chairman, President and CEO Bill Stewart said: “We are very pleased to be joining forces with Baker Hughes and believe that this is an attractive combination for all of BJ Services’ constituencies: customers will benefit from our wider and better-integrated array of services and technologies; our employees will enjoy the advantages and opportunities of being a part of a larger, stronger company; and BJ Services’ stockholders will have the opportunity to continue to participate in the success of the combined enterprise.”
Although pressure pumping accounted for less than 1% of Baker Hughes’ revenues in 2008, it is expected to generate approximately 20% of the combined company’s revenues, providing Baker Hughes with revenues from pressure pumping that approaches its two largest competitors. Pressure pumping has grown in importance as customers have looked for new ways to unlock the full value of their reservoirs. The number of fields requiring pressure pumping services is expected to grow, especially outside of North America, where BJ Services can leverage Baker Hughes’ extensive international presence as it pursues growth opportunities.
The merger is subject to the approval of both Baker Hughes’ and BJ Services’ stockholders as well as other customary approvals. The companies anticipate that the transaction could close as soon as the end of the calendar year. Baker Hughes and BJ Services intend to file a joint proxy statement / prospectus with the Securities and Exchange Commission as soon as possible.
Goldman, Sachs & Co. is acting as Baker Hughes’ financial advisor, and Baker Hughes’ legal advisors are Akin Gump Strauss Hauer & Feld LLP, Fulbright & Jaworski L.L.P., Howrey L.L.P., and Morris, Nichols, Arsht & Tunnell LLP. Greenhill & Co. is acting as BJ Services’ financial advisor and rendered a fairness opinion to the Board of Directors. BofA Merrill Lynch Securities also rendered a separate fairness opinion to the Board of Directors of BJ Services. BJ Services’ legal advisors are Skadden, Arps, Slate, Meagher & Flom LLP, and Andrews Kurth LLP.
Conference Call
Baker Hughes and BJ Services have scheduled a joint conference call today to discuss the merger. The call will begin at 8:30 a.m. Eastern time, 7:30 a.m. Central time, on August 31, 2009. To access the call, which is open to the public, please contact the conference call operator at (877) 382-1760 (877) 382-1760 , or (706) 758-8296 (706) 758-8296 for international callers, 20 minutes prior to the scheduled start time, and ask for the “Baker Hughes and BJ Services Conference Call.” A replay will be available through, September 28, 2009. The number for the replay is (800) 642-1687 (800) 642-1687 , or (706) 645-9291 (706) 645-9291 for international callers. The call and replay will also be web cast on http://www.bakerhughes.com and on http://www.bjservices.com. Today’s news release, along with other news about Baker Hughes and BJ Services, is available on the Internet at http://www.bakerhughes.com/investor in the “News and Events” section under “Events and Presentations” ; http://www.bjservices.com in the “Investors” section; and http://www.premieroilservices.com.
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