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BP Awards Baker Hughes Major Service Role at Tangguh LNG Plant
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Key Takeaways
BP awarded Baker Hughes a 90-month service deal for Tangguh LNG in Papua Barat, Indonesia.
The contract covers parts, repairs, and field support for turbines and compressors at the plant.
Baker Hughes partners locally with PT Imeco to meet Indonesian content rules under the contract.
BP plc (BP - Free Report) has appointed U.S.-based energy technology company Baker Hughes (BKR - Free Report) to deliver long-term support services for the Tangguh LNG project in Papua Barat, Indonesia, one of the nation’s most important energy developments.
Under the new 90-month service agreement, Baker Hughes will provide spare parts, repair, and field service engineering support for critical turbomachinery at the facility. This includes heavy-duty gas turbines, steam turbines, and compressors serving the plant’s three LNG trains. The deal is designed to ensure reliability and performance as the Tangguh complex expands its role in meeting Asia-Pacific’s growing demand for liquefied natural gas.
Part of Tangguh’s Next Growth Phase
The award builds on a long-standing relationship between BP and Baker Hughes at Tangguh, dating back to 2009. In 2024, the technology company was also selected to supply additional power and compression systems for BP’s Tangguh UCC project, a $7 billion expansion sanctioned in late 2024. Construction activities, led by Saipem, are now underway.
The Tangguh UCC development aims to unlock around 3 trillion cubic feet of additional gas resources, with first production from the Ubadari gas field expected in 2028, per media reports. This will extend feed gas supply to the LNG plant and enhance Indonesia’s position as a key regional supplier.
Local Partnerships and Regional Commitment
For the new contract, Baker Hughes is working with PT Imeco Inter Sarana as a local consortium partner to meet Indonesian content requirements. The company framed the deal as evidence of its continuing support for Indonesia’s energy future, while also underlining the facility’s strategic importance to regional LNG markets.
According to Baker Hughes, Tangguh LNG remains a cornerstone of Indonesia’s long-term energy strategy — playing a critical role in supplying safe and reliable gas across Asia-Pacific. The agreement is expected to strengthen the facility’s operational resilience and production continuity.
Zacks Rank and Key Picks
BP and BKR currently carry a Zacks Rank #3 (Hold) each.
Investors interested in the energy sector may look at a couple of better-ranked stocks like Antero Midstream Corporation (AM - Free Report) and Precision Drilling Corporation (PDS - Free Report) . While Precision Drilling sports a Zacks Rank #1 (Strong Buy) at present, Antero Midstream carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.
AM’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 1.13%.
Precision Drilling is an oilfield services company. It provides contract drilling, well servicing and strategic support services to the oil and gas industry in North America and internationally. It provides land drilling, directional drilling, turnkey drilling, camp and catering services, and procures and distributes oilfield supplies.
PDS’ earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average surprise of 977.7%. The Zacks Consensus Estimate for 2025 earnings indicates a 14.2% year-over-year decline.
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BP Awards Baker Hughes Major Service Role at Tangguh LNG Plant
Key Takeaways
BP plc (BP - Free Report) has appointed U.S.-based energy technology company Baker Hughes (BKR - Free Report) to deliver long-term support services for the Tangguh LNG project in Papua Barat, Indonesia, one of the nation’s most important energy developments.
Under the new 90-month service agreement, Baker Hughes will provide spare parts, repair, and field service engineering support for critical turbomachinery at the facility. This includes heavy-duty gas turbines, steam turbines, and compressors serving the plant’s three LNG trains. The deal is designed to ensure reliability and performance as the Tangguh complex expands its role in meeting Asia-Pacific’s growing demand for liquefied natural gas.
Part of Tangguh’s Next Growth Phase
The award builds on a long-standing relationship between BP and Baker Hughes at Tangguh, dating back to 2009. In 2024, the technology company was also selected to supply additional power and compression systems for BP’s Tangguh UCC project, a $7 billion expansion sanctioned in late 2024. Construction activities, led by Saipem, are now underway.
The Tangguh UCC development aims to unlock around 3 trillion cubic feet of additional gas resources, with first production from the Ubadari gas field expected in 2028, per media reports. This will extend feed gas supply to the LNG plant and enhance Indonesia’s position as a key regional supplier.
Local Partnerships and Regional Commitment
For the new contract, Baker Hughes is working with PT Imeco Inter Sarana as a local consortium partner to meet Indonesian content requirements. The company framed the deal as evidence of its continuing support for Indonesia’s energy future, while also underlining the facility’s strategic importance to regional LNG markets.
According to Baker Hughes, Tangguh LNG remains a cornerstone of Indonesia’s long-term energy strategy — playing a critical role in supplying safe and reliable gas across Asia-Pacific. The agreement is expected to strengthen the facility’s operational resilience and production continuity.
Zacks Rank and Key Picks
BP and BKR currently carry a Zacks Rank #3 (Hold) each.
Investors interested in the energy sector may look at a couple of better-ranked stocks like Antero Midstream Corporation (AM - Free Report) and Precision Drilling Corporation (PDS - Free Report) . While Precision Drilling sports a Zacks Rank #1 (Strong Buy) at present, Antero Midstream carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.
AM’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 1.13%.
Precision Drilling is an oilfield services company. It provides contract drilling, well servicing and strategic support services to the oil and gas industry in North America and internationally. It provides land drilling, directional drilling, turnkey drilling, camp and catering services, and procures and distributes oilfield supplies.
PDS’ earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average surprise of 977.7%. The Zacks Consensus Estimate for 2025 earnings indicates a 14.2% year-over-year decline.