BP Awards Baker Hughes Major Service Role at Tangguh LNG Plant

BP plc BP has appointed U.S.-based energy technology company Baker Hughes BKR 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 PhaseThe 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 CommitmentFor 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 PicksBP 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 and Precision Drilling Corporation PDS. 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.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP): Free Stock Analysis Report Antero Midstream Corporation (AM): Free Stock Analysis Report Precision Drilling Corporation (PDS): Free Stock Analysis Report Baker Hughes Company (BKR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks