Baker Hughes Secures Long-Term Service Agreement with BP for Tangguh LNG Plant

BP has entered into a long-term service agreement with Baker Hughes for its Tangguh LNG facility in Indonesia. The agreement includes comprehensive support for turbomachinery and aims to maintain the operational reliability of the plant. BP's financial health is characterized by a 1-year growth decline of 5.1% in revenue and a debt-to-equity ratio of 1.27. The company's revenue trends show a mixed picture, with a 3-year growth rate of 15% but a 10-year decline of 1.9%. BP's valuation metrics are complex, with a P/E ratio of 211.73 and analyst recommendations averaging at 2.6.

BP has entered into a long-term service agreement with Baker Hughes for its Tangguh Liquefied Natural Gas (LNG) facility in Indonesia. This comprehensive 90-month 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. The agreement aims to ensure the continued reliable operation of the plant, which is a cornerstone of Indonesia's energy strategy and plays a vital role in supplying safe and reliable energy to the Asia-Pacific region [1][2].

The agreement builds on Baker Hughes' long-standing relationship with BP at the Tangguh LNG project since 2009 and most recently an award in 2024 to supply additional critical power and compression systems for BP's Tangguh UCC Project. Baker Hughes' continued support will contribute to the sustained performance and availability of the plant's critical turbomachinery, which is essential for LNG operation. The company is collaborating with PT Imeco Inter Sarana as its local consortium partner to deliver on the local content requirements of the agreement [1][2].

This agreement demonstrates Baker Hughes' strategic focus on supporting its footprint in LNG with critical equipment asset management services and follows the recent announcement to expand its existing service capability in Asia Pacific to address the region's energy expansion and transition needs [1][2].

BP's financial health is characterized by a 1-year growth decline of 5.1% in revenue and a debt-to-equity ratio of 1.27. The company's revenue trends show a mixed picture, with a 3-year growth rate of 15% but a 10-year decline of 1.9%. BP's valuation metrics are complex, with a P/E ratio of 211.73 and analyst recommendations averaging at 2.6 [3].

References:
[1] https://investors.bakerhughes.com/news-releases/news-release-details/baker-hughes-awarded-long-term-service-agreement-bp-tangguh-lng
[2] https://www.marketscreener.com/news/baker-hughes-wins-long-term-service-agreement-by-bp-for-tangguh-lng-operations-supporting-indonesia-ce7c50d9da8ff421
[3] https://www.ainvest.com/news/williams-sonoma-q2-revenue-beat-glimpse-resilience-retail-rebound-2508/