GE Targets to Reduce Cost of Oil Production with Baker Hughes Merger
- Sep 06, 2017
- This Day
The Chief Executive Officer, sub-Saharan Africa, Bakers Hughes, a GE Company (BHGE), Mr. Ado Oseragbaje has stated that the merger of Bakers Hughes and GE Oil and Gas would provide the technology that would reduce the cost of crude oil production in Nigeria.
Speaking to journalists on the activities of his company, which was created out of the merger, Oseragbaje said cost could only be reduced by cost cutting or using more efficient technology.
“If you talk to our customers; if you talk to the regulators; if you talk to our partners; there is a tremendous excitement right from the moment that we announced this merger in October 2016. There has been a tremendous excitement about it all the way till today simply because the industry can see a lot of benefits and can also see how those efficiencies can translate directly to cost benefits. The other thing that you know is that to reduce your cost, there are two ways to do it. It is either you cut the cost itself or you are more efficient with the same cost. If you look at it in terms of an oil and gas company and what is happening, what it means is that they produce more with the same cost. There are several ways that they can do that. It is either the equipment is more reliable or the predictability of the reservoir and the producibility of the reservoir improve. So, when you start to look at some of the things that we would launch into the market, particularly as well around the digital offerings, one of the things is again unique to GE is our offering around the digital trend,” he explained.
He disclosed that GE would deploy the technology that would make machines more efficient, more predictable and more intelligent across the entire chain to the reservoir.
Oseragbaje, who also explained the merger between the two entities, further stated that the “idea behind BHGE is borne out of a long term strategy of GE looking at how technology can make an impact to the industrial sector”.
“So, GE Oil and Gas started about 22 years ago through a series of acquisitions and the whole idea from that is how could we use technology to improve productivity in the industrial space? Really, as GE, we initially came from that standpoint – looking at technology and its application on industry. As things progressed, we got a better understanding of the industry and we felt that our portfolio is incomplete because we did not have big footprint in the upstream services. That is the backdrop from GE’s standpoint,” he explained.
According to him, GE did not have meaningful foot print in well construction and certain other areas in the exploration and production (E & P) segment.
“So, we started thinking of how to do it. We were trying to find a company that had similar values to GE Oil and Gas. If you look at Baker Hughes, a lot of fundamental core values of Baker Hughes is very similar to GE Oil and Gas. What do I mean by that? There is a tremendous commitment to health and safety; there is a tremendous commitment to integrity; there is a passion for technology and the application of technology. In fact, if you look at the heritage of Baker, it is very similar to the heritage of GE Oil and Gas.,” he said.
“When you look at the compatibility of the two companies not just in terms of technology but actually, culture compatibility, then it was a natural fit. Now, what are we trying to do? We are trying to do something that is completely unique,” he added.
Oseragbaje argued that with the merger, no other company on earth from service or technology provider standpoint has the same footprint in the upstream, midstream and downstream like the new GE company.
Ondo State Empowers Teachers in Digital Technology
Ondo State government, in partnership with SAP, is set to train and empower its teachers in digital technology, ahead of the SAP Africa Code Week (ACW).
SAP’s Africa Code Week (ACW) initiative, has received accolades as a critical leverage to bridge the continent-wide digital divide, as well as being a significant launch-pad for youth empowerment in the digital era.
Governor of Ondo State, Mr. Oluwarotimi Akeredolu, gave a rousing speech where he thanked SAP and ACW key and primary partners (UNESCO YouthMobile, the Cape Town Science Centre, the Galway Education Centre and Google) for their vision of every African child empowered though ICT.
The governor spoke through the Deputy Governor, Mr. Agboola Ajayi, at a two-day Train-the-Trainer hands-on workshop organised by SAP in partnership with the state.
Based on the globally-acclaimed scratch interface developed by the MIT Media Lab to simplify the face of coding for the young generation, the training is aimed at imparting coding skills to secondary school teachers across the three Senatorial Districts in the run up to Africa Code Week 2017 – which will take place from 18 to 25 Octoberacross 35 countries.
The Governor said he considered the workshop as very relevant since the time has come for Government and the private sector entities to work together to promote digital access, improve ICT skills and create opportunities for youths in our ever-competitive and dynamic world.
“It is also gratifying to note that SAP shares this philosophy that we need to join forces to bridge the digital skills and gender gap continent-wide. I am therefore very happy that SAP is deploying their skilled volunteers to train teachers in Ondo State who, will in turn, will train the next generation of ICT savvy youths,” the governor said.
Akeredolu said the state desires that the citizenry of Ondo State participate actively in the new economy, benefiting from the opportunities it presents. To facilitate this, the Government is championing many ICT initiatives such as the planned establishment of Tech Hubs in each of the three senatorial districts, to make governance more effective and efficient.
“This will provide an enabling environment for different categories of youths and ICT enthusiasts to acquire and develop different skills in information and communication technology, which can be deployed for economic gains as ‘techpreneurs’, the governor said.
Speaking further on ACW 2017, Director of EMEA Corporate Social Responsibility at SAP and Africa Code Week Global Lead, Claire Gillissen-Duval, said; “Leveraging freely accessible teaching materials like Scratch, ACW Train-the-Trainer workshops provide a sound, scalable structure for inter-group knowledge sharing, unlocking people’s potential and desire to serve as resources for each other. In the knowledge sharing age we live in, this is the key to scaling digital literacy initiatives in a sustainable way, across all communities.”
Managing Director, SAP West Africa, Pedro Guerreiro, stated that ACW would reinforce SAP’s commitment to education, creating a full lifecycle of skills support for young people in Africa. With a goal to empower 200,000+ teachers and positively impact the lives of 5M young Africans over the next 10 years, ACW is built to be sustainable and provide long-term impact.