Baker Hughes Co. agreed to sell its Russian oilfield services business as part of the Houston-based company’s previous commitment to exit the country following Russia’s invasion of Ukraine.
According to an Aug. 1 release, a local management team had agreed to buy out Baker Hughes’ oilfield services (OFS) business in Russia for undisclosed terms. Baker Hughes said the business unit will operate independently of Baker Hughes—including an independent brand—upon closing expected in the second half of 2022.
Last month, Baker Hughes reported a nonoperating loss of $426 million related to its oilfield services unit in Russia at the end of the second quarter, according to a Reuters report. Revenue from the unit also declined 51% sequentially to $60 million, leading to “meaningful cost under-absorption,” the company said in July.
The sale of its Russian oilfield services unit is subject to the approval of local authorities. Baker Hughes said it is committed to supporting its employees throughout this process and ensuring an orderly transfer for its customers and relevant parties.
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 company added in a release.
Reuters contributed to this report.
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