The new owner of Baker Hughes’ Russian assets is raising an inventory of wells

OFS Technologies, the company created after buying Baker Hughes’ assets in Russia in 2022, is currently working to increase its well inventory to lay the groundwork for Russia to increase its oil production when needed, said the chief executive of company, David Gadzhimirzaev. Russian news agency Interfax in an interview on Tuesday.

Russia is actively working to increase the number of oil wells to be ready to increase production when the time and conditions are right, the executive told Interfax on the sidelines of an energy forum in Russia.

Gadzhimirzaev heads OFS Technologies, which was created in 2022. Back then, one of the world’s leading oil services providers, Baker Hughes, announced its withdrawal from Russia following Vladimir Putin’s invasion of Ukraine, as did many other energy companies.

Baker Hughes signed an agreement in August 2022 to sell its Oilfield Services business in Russia to its local management team. The agreement follows Baker Hughes’ previously announced suspension of new investment for its Russian operations and commitment to comply with applicable laws and sanctions. At the time, Baker Hughes says the new business will operate independently of Baker Hughes – including an independent brand – and will assume all of OFS Russia’s current business assets, liabilities and obligations.

Two years later, OFS Technologies is estimated to hold 10 percent of the Russian oil services market, according to Interfax.

Asked about the impact of the ongoing OPEC+ cuts, which Russia is a part of, Gadzhimirzaev told Interfax that the company does not see any effect on the drilling business.

The decline in crude oil production does not necessarily mean a decline in drilling activity as companies continue to explore for new oil and gas reserves, the executive said.

“We are increasing the well inventory so that the country is ready to increase production at the right time,” Gadzhimirzaev told Interfax.

By Charles Kennedy for Oilprice.com

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