Energy services major Baker Hughes Co. (NASDAQ:BKR) secured a multi-year contract from oil giant Aramco to expand operations across Saudi Arabia’s extensive natural gas fields.
The agreement, which centers on integrated underbalanced coiled tubing drilling (UBCTD), marks a crucial step toward accelerating Aramco's access to gas resources.
The new arrangement will more than double Baker Hughes’ coiled-tubing drilling fleet in the Kingdom, increasing the fleet from four to 10 units. These specialized units will tackle both established fields and new drilling locations nationwide. The project’s launch is scheduled for 2026, building upon the company’s established presence in Saudi Arabia since 2008.
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Amerino Gatti, Executive Vice President of Oilfield Services & Equipment at Baker Hughes, emphasized the long-standing and successful relationship. He stated the project “is the result of nearly two decades of successful collaboration between Baker Hughes and Aramco, which have set the standard for UBCTD.”
He noted that blending advanced technology with a coordinated, integrated approach enables Aramco to efficiently reach challenging hydrocarbon deposits, ultimately supporting the Kingdom’s economic success.
Baker Hughes will manage all aspects of the UBCTD activities. This includes delivering coiled tubing drilling units, specialized underbalanced services, complete operational oversight, well construction, and geosciences support.
Price Action: BRK shares are trading lower by 1.86% at $47.98 premarket at the last check on Friday.
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