Baker Hughes Signs Major Contract with Petrobras for Offshore Services in Brazil

Baker Hughes, a leading global energy technology company, has recently secured a significant contract with Petrobras, the Brazilian state-run oil company. The contract involves providing a range of services for offshore oil fields in Brazil, including workover and plug and abandonment (P&A) services in pre-salt and post-salt fields. The project is set to begin in the first half of 2025.

Under the agreement, Baker Hughes will offer a comprehensive suite of services, such as wireline, coiled tubing, cementing, tubular running, wellbore intervention, fishing, and geosciences services. Additionally, the company will supply remedial tools, completion fluids, and production chemicals to support Petrobras’ offshore operations.

Maria Claudia Borras, the executive vice president of Oilfield Services & Equipment at Baker Hughes, highlighted the importance of the company’s technology portfolio and understanding of the Brazilian market for the success of the project. By integrating these capabilities, Baker Hughes aims to efficiently support the energy sector’s progress in Brazil.

To further facilitate the project and contribute to the local industry and workforce, Baker Hughes plans to expand its facilities in MacaĆ©, Rio de Janeiro, by adding coiled tubing and tubular running services. This expansion aligns with the company’s commitment to enhancing the energy landscape in Latin America.

Baker Hughes, operating in over 120 countries, focuses on making energy production safer, cleaner, and more efficient. The contract with Petrobras signifies a significant step in the company’s efforts to support energy development in Brazil.

In addition to this contract, Baker Hughes has shown strong growth in its Q1 earnings, with a 50% increase in earnings per share and a rise in EBITDA margins. The company has secured substantial contracts with other key players in the energy sector and is exploring opportunities in LNG and new energy sectors.

Furthermore, Baker Hughes is actively exploring artificial intelligence and decarbonization strategies to meet the evolving demands of the energy sector. The company’s strategic focus and growth potential have been acknowledged by financial analysts, with UBS maintaining a Neutral stance on Baker Hughes shares.

The appointment of Shirley Edwards to Baker Hughes’ Board of Directors reflects the company’s commitment to diversity and strategic direction. Edwards’ appointment is expected to bring fresh perspectives to the company’s leadership.

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Overall, Baker Hughes’ contract with Petrobras highlights the company’s strategic growth and stability in the energy sector, positioning it as a key player in the industry.