Full stream technology provider, industry-unique portfolio ● Combining strengths, technology, services, global capability ● 2x scale- better ability to influence customer outcomes ● Blended leadership team- deep industry expertise ● GE Digital capability- significant impact on oilfield services productivity

2. MOTIVE
● Full stream technology provider,
industry-unique portfolio
● Combining strengths, technology, services,
global capability
● 2x scale- better ability to influence
customer outcomes
● Blended leadership team- deep industry
expertise
● GE Digital capability- significant impact on
oilfield services productivity

3. ● GE used Baker Hughes to hide multi-billion dollar losses
The company closed 2018 with a $22.8 billion loss on $121.6
billion of revenue, but Markopolos said the losses should have
been much higher.
Allegedly the General Electric hid $38 billion in losses and that
the industrial giant improperly included financial results from
Baker Hughes as part of its own.
● General Electric merged its oil and gas division with Baker Hughes in a
$7.4 billion acquisition deal that closed in June 2017
● Although General Electric held 62.5 percent of the merged company's
stock, Baker Hughes remains independent and continues to be traded
under its own stock ticker symbol, BHGE.
● November 2018 stock sale, General Electric reduced its ownership stake
in Baker Hughes to 50.4 percent.
the sale should have prompted General Electric to use a different
set of accounting practices where it could no longer include the
financial results of Baker Hughes as part of its own.
Maintaining a 50.4 percent interest in BHGE is a sham
transaction with no business purpose done solely so that GE can
create the false impression that GE has a reason to keep $9.1
billion in losses off of its books in 2018
General Electric stock plummeting by more than 11 percent at
the closed of trading while Baker Hughes stock fell by nearly 6
percent.

4. WHAT SUNK THE
SHIP?
● Over-reliance on business tied to fossil
fuels
● Mismatching of cultures
● Disappointing shareholders - cost
cutting, abrupt rise in service fee aimed
to raise revenues and margins and
hence, plummeted the market share
● Laying off of designated employees
● Inexperience in oil and gas market
analyzing costing the company as sales
of gas and coal turbine halved

6. • Committing to unprecedented levels of natural gas operation in line with their
corporate strategy for growth and maximizing shareholder profits
• Increasing market power by reducing competition through acquiring BG
• Capabilities- desire to maintain its lead as the petroleum industry’s largest
net LNG producer
• Projected deep-water drilling in Brazil is expected to boost Shell’s crude
oil production from 50,000 barrels per day (bpd) to 550,000 bpd

7. ● Added value to Shell by incorporating a
degree of longevity into their operations
● Overleaping the upstream operations of shell
● Uncompromised safe business
● Local challenges to generate plan rather than
adopting one generic approach
● Ideology of working as one team
● Discover, define and implementation was a
3 step easy to understand phases was created

8. 20191005 PGP19
SCHOOL OF PETROLEUM MANAGEMENT
PANDIT DEENDAYAL PETROLEUM
UNIVERSITY

9. Shell-BG deal:
● https://www.ft.com/content/d8345ff4-c5ce-11e5-808f-8231cd71622e
GE-Baker Hughes deal:
● https://www.forbes.com/sites/christopherhelman/2020/07/29/ge-to-sell-remaining-stake-in
-baker-hughes-over-three-years/#204192ee1f29