Halliburton announced establishing the first oilfield chemical manufacturing reaction plant in Saudi Arabia, Pipeline Oil and Gas Magazine reported.

“We chose Saudi Arabia for this plant because it provides an advantaged location for us to deliver our value proposition of superior service and chemical applications’ expertise to the Eastern Hemisphere customers, and because of our strong 80-year history of success in the Kingdom of Saudi Arabia,” Jeff Miller Halliburton chairman, president, and CEO said.

After completing the plant by 2020, Halliburton will begin local manufacturing of specialty chemicals to help customers achieve production and reliability goals in applications from the reservoir to the refinery.

The plant will have capabilities to manufacture a broad slate of chemicals for stimulation, production, midstream, and downstream engineered treatment programs.