Baker Hughes signs 90-month service deal with bp for Tangguh LNG plant

Published 26/08/2025, 12:12
Baker Hughes signs 90-month service deal with bp for Tangguh LNG plant

HOUSTON/LONDON - Baker Hughes (NASDAQ:BKR), the $42.2 billion energy technology company with annual revenues of $27.6 billion, announced a 90-month service agreement with bp for the Tangguh Liquefied Natural Gas (LNG) plant in Papua Barat, Indonesia, according to a press release statement.

The agreement covers spare parts, repair services, and field service engineering support for critical turbomachinery at the facility, including heavy-duty gas turbines, steam turbines, and compressors for three LNG trains. According to InvestingPro data, Baker Hughes has maintained consistent dividend payments for 39 consecutive years, demonstrating long-term operational stability.

This deal builds on Baker Hughes’ relationship with bp at the Tangguh LNG project that began in 2009, following a 2024 award to supply additional power and compression systems for bp’s Tangguh UCC Project.

The Tangguh LNG facility is described as a cornerstone of Indonesia’s energy strategy, supplying energy to the Asia-Pacific region.

"This long-term service agreement with bp for Tangguh LNG is a testament to our continued partnership and commitment to progressing energy development in Indonesia," said Tiffany Pitts, vice president of Gas Technology Services at Baker Hughes.

Baker Hughes is working with PT Imeco Inter Sarana as its local consortium partner to meet local content requirements of the agreement.

The energy technology company noted this agreement aligns with its strategic focus on supporting its LNG footprint with equipment asset management services, following a recent announcement to expand service capability in Asia Pacific. InvestingPro analysis suggests Baker Hughes is currently undervalued, with 12 analysts recently revising earnings estimates upward. Get access to 8 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

In other recent news, Baker Hughes has completed its $540 million all-cash acquisition of Continental Disc Corporation. This acquisition is expected to immediately enhance earnings and cash flow per share, as well as improve margins in the Industrial & Energy Technology segment. Additionally, Baker Hughes announced a significant $13.6 billion acquisition of Chart Industries, which provides process technologies and equipment for gas and liquid molecule handling. Following these acquisitions, Piper Sandler reiterated its Overweight rating on Baker Hughes with a price target of $50.00.

Furthermore, Melius Research initiated coverage on Baker Hughes with a Buy rating and a price target of $60.00, highlighting the company’s transformation into a global energy and industrial technology leader. BMO Capital raised its price target on the company to $53.00 from $46.00, citing the benefits of the Chart acquisition to the company’s Industrial Energy & Technology segment. Meanwhile, BofA Securities increased its price target to $190.00, maintaining a Neutral rating, driven by reported traffic growth attributed to effective advertising and menu innovations at Chili’s. These developments indicate a period of strategic expansion and positive evaluations from various research firms for Baker Hughes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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