Baker, Aker align to improve offshore production

Oil services company Baker Hughes said it was cleared by the federal government to form a partnership on subsea production technology with Aker Solutions.

Baker Hughes and Aker in April announced their intention to form an alliance that could lead to enhanced production and recovery from offshore fields.

The oil services company said it received the necessary regulatory authority to form the Subsea Production Alliance with Aker.

Baker Hughes said that, apart from production technology, the alliance would focus on "advancing the industry's well-intervention capabilities to further optimize efficiency and reduce risks in subsea developments."

Offshore drilling was scrutinized in the wake of the BP oil spill in 2010. Last month, the American Petroleum Institute outlined recommended practices for the installation of so-called capping stacks, a mechanism developed in the wake of the spill.

Oil companies are reaching into record depths offshore. Rig leasing company Transocean last year said it set a world record offshore drilling operations in a water depth of more than 10,400 feet, or close to 2 miles, off the coast of India.