Baker Hughes Awarded Major Integrated Solutions Contract for Petrobras’ Offshore Fields
Baker Hughes (NASDAQ: BKR) announced a significant contract from Petrobras for workover and plug and abandonment (P&A) services in Brazil's offshore pre-salt and post-salt fields.
This multi-year project, starting in early 2025, will leverage Baker Hughes’ integrated solutions portfolio to optimize Petrobras’ operational performance. The services will encompass wireline, coiled tubing, cementing, tubular running, wellbore intervention, fishing, and geosciences, as well as remedial tools, completion fluids, and production chemicals.
To support this venture, Baker Hughes will expand its facilities in Macaé, Rio de Janeiro, enhancing local industry and workforce development. Maria Claudia Borras, EVP of Oilfield Services & Equipment at Baker Hughes, emphasized the importance of their comprehensive technology portfolio and localization expertise in driving the project's success.
- Significant multi-year contract award from Petrobras, indicating strong business relationships and revenue pipeline.
- Comprehensive integrated solutions approach enhances operational performance and efficiency.
- Expansion of Macaé facilities to include coiled tubing and tubular running services, contributing to local industry growth.
- Baker Hughes’ deep understanding of localization and history in Brazil leveraged to maximize project success.
- Immediate commitment to start in the first half of 2025, providing clear timeline and business planning.
- Potential risks associated with managing complex, multi-year offshore projects.
- Initial investments needed to expand Macaé facilities could affect short-term financials.
Insights
Baker Hughes' major contract with Petrobras for workover and plug and abandonment (P&A) services in Brazil's offshore fields represents a significant development in the energy sector. The contract's multi-year span and its comprehensive scope of services, including wireline, coiled tubing and wellbore intervention, indicate a substantial business opportunity for Baker Hughes.
Operational excellence and localization are key themes here. By leveraging its integrated solutions and expanding its Macaé facilities, Baker Hughes is positioning itself as a vital player in Brazil's energy landscape. This expansion not only enhances Baker Hughes' service capacity but also contributes to local economic growth and workforce development, potentially leading to increased market share in Latin America.
From a financial perspective, securing such a large-scale, long-term contract can provide revenue stability and visibility. However, the project's success will depend on Baker Hughes' ability to manage operational risks and deliver on its promises of efficiency and performance optimization.
- Multi-year project will see Baker Hughes provide solutions in pre-salt and post-salt fields offshore Brazil
- Baker Hughes’ comprehensive, integrated approach focuses on operational excellence, localization
HOUSTON, June 10, 2024 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Monday a significant order from Petrobras for workover and plug and abandonment (P&A) services in pre-salt and post-salt fields offshore Brazil.
The multi-year project, set to start in the first half of 2025, will be managed with Baker Hughes’ integrated solutions portfolio to optimize performance for Petrobras. Baker Hughes’ integrated approach will deploy wireline, coiled tubing, cementing, tubular running, wellbore intervention, fishing, and geosciences services in all of Petrobras’ offshore fields. The agreement also includes Baker Hughes remedial tools, completion fluids and production chemicals.
“Baker Hughes brings to this important project a comprehensive technology portfolio, a deep understanding of localization, and a rich history of working in Brazil,” said Maria Claudia Borras, executive vice president, Oilfield Services & Equipment at Baker Hughes. “Flawlessly integrating these capabilities will be essential to the success of the project. Our expertise in integrated solutions is the foundation for efficiently taking energy forward in Brazil.”
To support the project and help advance Latin America's energy landscape, Baker Hughes will expand its Macaé (Rio de Janeiro) facilities to include coiled tubing and tubular running services, contributing to the further growth of Brazilian industry and its workforce.
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:
Adrienne M. Lynch
+1 713-906-8407
adrienne.lynch@bakerhughes.com
Investor Relations:
Chase Mulvehill
+1 281-809-9088
investor.relations@bakerhughes.com
FAQ
What is the recent contract awarded to Baker Hughes by Petrobras?
When will Baker Hughes start the project with Petrobras?
What services will Baker Hughes provide for Petrobras' offshore fields?
How is Baker Hughes supporting the project with Petrobras?
Why is Baker Hughes' localization expertise important for the Petrobras project?
