Suit seeks to halt Nalco testing at Sunoco Refinery

Baker Hughes Inc., the world's third-largest oilfield-services provider, wants a U.S. court to stop Nalco Holding Co. from testing a process at a Sunoco Inc. refinery in Philadelphia.

In a court filing yesterday, Houston-based Baker said Nalco is trying to steal away Sunoco as a customer while using Baker's patented process for a way to remove impurities, such as calcium, from crude oil during the desalting process.

"Nalco is currently in a position to replace Baker at one customer's refinery and is attempting to replace Baker at other customers' refineries," Baker said in a filing that asks that Nalco be stopped from using the process until a trial can be held on Baker's patent-infringement claims.

Sunoco's Philadelphia refinery has a capacity of 330,000 barrels a day, according to Bloomberg data. It's the seventh- largest U.S. refinery by operable capacity, according to the U.S. Energy Department.

If Nalco isn't stopped, "Baker will suffer immediate irreparable harm as Baker's pricing, market share, good will and industry reputation will be forever diminished," Baker said in the filing in federal court in Houston. A hearing on Baker's request could be heard on Aug. 12.

Sunoco hired Baker in 2004 to process crude at the Philadelphia facility, according to the court filing. Nalco approached Sunoco last year and offered to provide the same service at a 35 percent discount to Baker's prices, Baker said.

High Calcium Crude

Philadelphia-based Sunoco "has advised Baker that when Nalco completes its extended tests in September, Nalco will replace Baker at the Sunoco refinery as the vendor for treating high calcium crude oil," Baker said in the court filing. "Nalco should not be allowed to profit from Baker's investment of time and resources in developing the Baker patented method."

Naperville-based Nalco is the world's biggest maker of water purification equipment and is partly owned by Warren Buffett's Berkshire Hathaway Inc.

Thomas Golembeski, a spokesman for Sunoco, and Charlie Pajor, a spokesman for Nalco, didn't immediately return messages seeking comment.

Schlumberger Ltd. is the world's biggest oilfield-services provider, followed by Halliburton Co.

The case is Baker Hughes Inc. v. Nalco Co., 09cv1885, U.S. District Court for the Southern District of Texas