As more locals tap into benefits from the emerging oil and gas sector, John Fernandes Limited has partnered with industrial services firm, the Baker Hughes Company (BHC) to provide onshore support services here.
The waterfront facility, named GPort according to the company’s website, held its sod turning for the project earlier last month and saw Philip Fernandes, CEO of John Fernandes Ltd and Chief Operational Officer of BHC, Uwem Ukpong, undertaking the ceremonial breaking of the ground.
Details of the agreement will be made known “when the agreement is completed”, JFL representative Jeremy Fernandes told Stabroek News when contacted.
He explained that his company could not give insight into the project without the approval of BHC, which has asked that they hold off on publicity of the partnership until all the legal aspects of the agreement are completed.
John Fernandes had last year started a US multi-million dollar shore-based support contract with the Italy-based Saipem company, a key contractor for ExxonMobil. That agreement was set to last for an 11-month period which would have expired in September of this year.
While it was subject to renewal, it is unclear if that contract was renewed.
However, John Fernandes forged ahead with plans for expanding its portfolio in the oil and gas sector and continued shorebase preparation work at the Wieting & Richter Ltd waterfront, 10-13 Water Street, North Cummingsburg property, which it had rented.
As of yesterday, works were still ongoing.
Baker Hughes Company recently changed its name from Baker Hughes, a GE Company (BHGE), following a divestment move from US appliances giant General Electric. However, despite the separation, GE still own 38% of shares in the company.
“Baker Hughes is uniquely positioned as an energy technology company, with a diverse portfolio that spans the entire energy value chain. The Company’s new name and brand better reflect its current and intended principal business operations and diversified portfolio,” the company’s website states.
And giving insight into its global portfolio, the company which has headquarters both in the United States and United Kingdom says, “Baker Hughes is an energy technology company that provides solutions for energy and industrial customers worldwide. Built on a century of experience and with operations 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.”
Specifically pertaining to the oil and gas sector, the company provides a wide range of products and services for oil field services and equipment covering all areas of oil and gas exploration and production.
But the company has not been without scandal, in 2007, the company agreed to pay more than US$44 million in fines to settle federal charges that it and one of its employees violated the Foreign Corrupt Practices Act (FCPA), said the US Department of Justice and the Securities and Exchange Commission (SEC) on April 26, as reported by the Oil & Gas Journal.
“The combined fines and penalties are the largest sanction so far in an FCPA case, the two federal agencies said. The charges stemmed from allegations that Baker Hughes Services International Inc. (BHSI) and one of its employees paid more than US$4 million in bribes over 2 years to an intermediary that the company believed would relay the payments to a Kazakhstan national oil company official. Separate SEC charges alleged additional FCPA violations by Baker Hughes in Nigeria, Angola, Indonesia, Russia, Uzbekistan, and Kazakhstan,” the report stated.
Then in September of this year, a grand jury in Alaska indicted the company, two of its subsidiaries and an employee, on 25 felony charges of assault relating to toxic chemical releases at a construction site, according to authorities.
“The indictment charges Baker Hughes and John Clyde Willis, identified as a manager for the oilfield services company. The 25 charges stem from chemical releases in 2014 during building of a chemical transfer facility in Kenai, Alaska, according to a statement from Alaska’s Attorney General’s office. Construction crew at the facility were repeatedly exposed to toxic chemicals, the statement said, but Baker Hughes, two of its subsidiaries and Willis failed to respond to worker complaints until several were taken to hospital following a “large exposure event”,” a Reuters report stated.
Five crew members, according to the statement referred to by Reuters, experienced prolonged serious injury, including ataxia, memory loss, migraines, vertigo, respiratory issues and tremors.
