Baker Hughes and Cactus form joint venture for surface pressure control services
Baker Hughes has announced plans to form a joint venture with Cactus Inc., transferring its surface pressure control product line to the partnership whilst retaining a 35% stake in the new entity.
The energy technology company revealed that Cactus, a global manufacturer of pressure control equipment for oil and gas operations, will assume operational control with a 65% ownership stake in the joint venture. The arrangement will see Cactus become the majority owner and operator of Baker Hughes' surface pressure control business.
The joint venture will operate independently from Cactus' existing pressure control operations and aims to maintain leadership in the international market for surface wellhead and production tree systems. The partnership combines complementary portfolios to drive technological innovation in the sector.
Baker Hughes Chairman and CEO Lorenzo Simonelli described the transaction as "an important step in our ongoing portfolio optimisation strategy", enabling the company to focus on core growth areas whilst delivering higher returns for shareholders. “We remain committed to our valued SPC partners and customers whose operations we have proudly supported, and we believe this joint venture only enhances delivery of innovation and reliability in well control as the combined business will leverage Cactus’ unconventional expertise and agility into international markets," Simonelli said.
The deal represents part of Baker Hughes' broader strategy to enhance earnings durability and cash flow, allowing capital reallocation towards higher-return opportunities. For Cactus, the partnership provides access to international markets through Baker Hughes' established global presence.
The transaction remains subject to customary regulatory approvals and other closing conditions, with completion expected during the second half of 2025. Both companies anticipate the joint venture will leverage Cactus' unconventional expertise and operational agility to strengthen their combined position in international well control markets.
