Baker Hughes Awarded Contracts to Supply Petrobras with Flexible Pipe Systems, Associated Services across Several Fields
Baker Hughes (NASDAQ: BKR) has secured significant contracts with Petrobras to supply 77 km of flexible pipe systems for Brazil's pre-salt fields. The multi-year project, signed October 15, 2024, includes risers and flowlines for hydrocarbon production and associated gas and water injection, with delivery starting mid-2026. The systems will be deployed across Petrobras' Búzios, Libra, Berbigão, Sururu and Sépia fields, addressing stress-induced corrosion cracking from CO2. The equipment will be manufactured at Baker Hughes' Niteroi plant in Brazil, supporting local employment and the energy supply chain.
Baker Hughes (NASDAQ: BKR) ha ottenuto contratti significativi con Petrobras per fornire 77 km di sistemi di tubazioni flessibili per i giacimenti pre-salino del Brasile. Il progetto pluriennale, firmato il 15 ottobre 2024, include riser e flowline per la produzione di idrocarburi e l'iniezione di gas e acqua associati, con consegne a partire dalla metà del 2026. I sistemi saranno utilizzati nei giacimenti di Petrobras Búzios, Libra, Berbigão, Sururu e Sépia, affrontando la problematica della corrosione da stress indotto dal CO2. Le attrezzature saranno prodotte nello stabilimento di Baker Hughes a Niteroi, in Brasile, a sostegno dell'occupazione locale e della catena di approvvigionamento energetico.
Baker Hughes (NASDAQ: BKR) ha obtenido contratos significativos con Petrobras para suministrar 77 km de sistemas de tuberías flexibles para los campos pre-salinos de Brasil. El proyecto de varios años, firmado el 15 de octubre de 2024, incluye risers y flowlines para la producción de hidrocarburos y la inyección de gas y agua asociada, con entregas que comenzarán a mediados de 2026. Los sistemas se desplegarán en los campos de Petrobras Búzios, Libra, Berbigão, Sururu y Sépia, abordando la corrosión por tensión inducida por CO2. El equipo se fabricará en la planta de Baker Hughes en Niteroi, Brasil, apoyando el empleo local y la cadena de suministro energético.
베이커 휴즈 (NASDAQ: BKR)는 브라질의 프리-솔트 유전용으로 77km의 유연한 파이프 시스템을 공급하기 위해 페트로브라스와 중요한 계약을 체결했습니다. 이 다년 프로젝트는 2024년 10월 15일에 서명되었으며, 탄화수소 생산 및 관련 가스 및 물 주입을 위한 라이저와 플로우라인을 포함하고 있으며, 배송은 2026년 중반부터 시작됩니다. 이 시스템은 페트로브라스의 부지우스, 리브라, 베르비가오, 수루루 및 세피아 유전에 배치되어 CO2로 인한 스트레스 유발 부식을 처리합니다. 장비는 브라질 니테로이의 베이커 휴즈 공장에서 제조되며, 지역 고용 및 에너지 공급망을 지원합니다.
Baker Hughes (NASDAQ: BKR) a obtenu des contrats significatifs avec Petrobras pour fournir 77 km de systèmes de tuyauterie flexibles pour les champs pré-salés du Brésil. Ce projet pluriannuel, signé le 15 octobre 2024, comprend des risers et des flowlines pour la production d'hydrocarbures ainsi que l'injection de gaz et d'eau associés, avec des livraisons à partir de la mi-2026. Les systèmes seront déployés dans les champs de Petrobras Búzios, Libra, Berbigão, Sururu et Sépia, pour faire face à la corrosion par contrainte induite par le CO2. Les équipements seront fabriqués à l'usine de Baker Hughes à Niteroi, au Brésil, soutenant l'emploi local ainsi que la chaîne d'approvisionnement en énergie.
Baker Hughes (NASDAQ: BKR) hat bedeutende Verträge mit Petrobras abgeschlossen, um 77 km flexible Rohrleitungssysteme für die brasilianischen Prä-Salzfelder zu liefern. Das mehrjährige Projekt, das am 15. Oktober 2024 unterzeichnet wurde, umfasst Steigleitungen und Flowlines für die Kohlenwasserstoffproduktion sowie die Injektion von zugehörigem Gas und Wasser, mit Lieferungen, die Mitte 2026 beginnen. Die Systeme werden in den Feldern von Petrobras Búzios, Libra, Berbigão, Sururu und Sépia eingesetzt, um der durch CO2 verursachten spannungsinduzierten Korrosionsschädigung entgegenzuwirken. Die Ausrüstung wird im Werk von Baker Hughes in Niteroi, Brasilien, hergestellt und unterstützt die lokale Beschäftigung sowie die Energielieferkette.
- Secured major contract for 77 km of flexible pipe systems with Petrobras
- Additional Q3 2024 contracts for 69.1 km of flexible pipe systems
- Local manufacturing in Brazil strengthens market position
- Technological advantage in handling high CO2 concentration challenges
- Project delivery won't start until mid-2026, indicating delayed revenue recognition
Insights
This significant contract win strengthens Baker Hughes' position in Brazil's lucrative pre-salt fields. The 77 km flexible pipe systems contract demonstrates the company's technological edge in handling high-CO2 environments, particularly addressing critical stress-induced corrosion challenges. The deal's strategic importance extends beyond immediate revenue, as it includes maintenance and installation services that provide recurring revenue streams.
The contract timing aligns with Petrobras' commitment to reduce CO2 emissions, positioning Baker Hughes as a key enabler of their environmental goals. The local manufacturing component in Niteroi provides a competitive advantage and helps secure future contracts. Combined with Q3's 69.1 km pipe systems contract and other service agreements, this represents significant market share growth in Brazil's offshore sector.
The localization strategy through the Niteroi manufacturing facility represents a significant competitive moat. Local production capabilities reduce logistics costs, minimize supply chain disruptions and align with Brazil's local content requirements. This positions Baker Hughes advantageously for future tenders against competitors. The multi-year nature of the project, with deliveries starting mid-2026, provides stable revenue visibility and operational planning benefits. The facility's role in employing hundreds in Rio de Janeiro also creates political goodwill, potentially influencing future contract awards.
- Company to support projects in Brazil’s pre-salt fields, reinforcing position as a leading provider of flexible pipe for deepwater and high CO2 projects
- Local manufacturing boost Brazilian economy, strengthen energy supply chain
HOUSTON and LONDON, Oct. 28, 2024 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Monday significant contracts with Petrobras to provide 77 km of flexible pipe systems to be deployed in Brazil’s pre-salt fields. The agreement was signed Oct. 15, 2024, following an open tender.
The multi-year project includes risers and flowlines for hydrocarbon production and associated gas and water injection with support for equipment storage, maintenance and installation. Delivery is scheduled to begin in mid-2026, and the equipment will be utilized across Petrobras’ Búzios, Libra, Berbigão, Sururu and Sépia fields.
These systems will also address the critical issue of stress-induced corrosion cracking from CO2 (SCC-CO2), which can affect flexible pipes in pre-salt fields with high concentrations of the gas. Baker Hughes’ flexible pipes have proven effective at mitigating this issue, which can arise as gas is reinjected into wells to reduce flaring and enhance oil recovery. Petrobras has committed to limiting CO2 emissions to the atmosphere in their operations, and CO2 storage is an important tool for producing lower-carbon barrels.
“Brazil’s Santos Basin contains incredible potential to help power Latin America into the future,” said Amerino Gatti, executive vice president, Oilfield Services & Equipment at Baker Hughes. “Operating in deep waters with high CO2 concentrations presents unique challenges. Baker Hughes’ combination of industry-leading subsea technology and engineering, expertise in offshore operations, and extensive experience in the region will assist Petrobras to unlock and develop this potential, delivering these vital resources safely and efficiently.”
Baker Hughes has been deeply involved in the development of Brazil’s offshore oil and gas fields for decades, and its localization strategy contributes to the nation’s economy while strengthening its energy supply chain. The company’s plant in Niteroi, Brazil, where these systems will be manufactured, is a major supplier of flexible pipe systems for the industry and employs hundreds of people in the state of Rio de Janeiro.
The company has announced several agreements with Petrobras throughout 2024, including additional contracts for 69.1 km of flexible pipe systems and associated services in the third quarter. Other awards have included integrated well construction services in the Buzios field and integrated solutions for workover and plug and abandonment services across Petrobras’ pre-salt and post-salt fields.
About Baker Hughes
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.
For more information, please contact:
Media Relations
Brian Reynolds
+1 346-315-6663
brian.reynolds@bakerhughes.com
Investor Relations
Chase Mulvehill
+1 346-297-2561
investor.relations@bakerhughes.com
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