Baker Hughes has secured a multi-year contract from Kuwait Oil Company (KOC) to accelerate technology innovation in Kuwait’s upstream oil and gas sector through the Ahmadi Innovation Valley (AIV).

Under the agreement, Baker Hughes will serve as a key technology collaborator for AIV, focusing on the development and deployment of scalable, fit-for-purpose technologies aimed at optimizing oil production and flow assurance while addressing KOC’s broader technology priorities.

The collaboration will draw on Baker Hughes’ digital and artificial intelligence (AI) automation technologies to support higher recovery from existing wells, lower operating costs, reduce water production, and minimize power consumption, according to the NASDAQ listed energy technology company.

As part of the contract, Baker Hughes will establish a dedicated research and technology development center within AIV in Kuwait. The facility will support the continuous evaluation of new technologies, their deployment at scale, and the development of local technical expertise.

“Baker Hughes is committed to deeply understanding KOC’s development aspirations and providing the solutions needed to help achieve them,” Lorenzo Simonelli, Baker Hughes Chairman and CEO, commented.

“Working together, we aim to deliver tailored technology solutions at scale that improve production performance and efficiency, supporting KOC’s goals to maximize value from their assets,” Simonelli added.

KOC’s Ahmadi Innovation Valley is its flagship innovation initiative, bringing together industry, academia, and technology providers to address strategic upstream technical challenges.

In July, KOC awarded Halliburton a multiyear contract to help develop the Ahmadi Innovation Valley (AIV), a key driver of Kuwait’s energy transformation. This R&D center will empower KOC to tackle complex operational challenges; spanning brownfield, greenfield, and unconventional fields; by creating customized upstream technologies. The facility is designed to integrate applied research into every stage of development, moving seamlessly from initial concept to prototyping, piloting, and commercialization.

In June, SLB announced a seven-year agreement with KOC under which it plans to establish a dedicated AIV facility, with construction expected to begin in 2026 and operations targeted for 2028.