Baker Hughes Awarded Integrated Coiled-Tubing Drilling Contract for Dubai Petroleum Establishment’s Margham Gas Storage Project

Rhea-AI Summary

Baker Hughes (BKR) has secured a multi-year contract with Dubai Petroleum Establishment (DPE) to provide integrated coiled-tubing drilling services for the Margham Gas storage project. The project aims to enhance Dubai's energy supply stability by enabling switching between natural gas and solar power.

The contract expands Baker Hughes' involvement in the Margham Gas project, where they are already supplying Integrated Compressor Line (ICL) units for gas storage, injection, and export. The company will implement their CoilTrak™ coiled-tubing bottomhole assembly system, which enhances reservoir connectivity through efficient slim-hole multilateral drilling.

This integrated solution combines coiled-tubing drilling, under-balanced drilling, and the CoilTrak™ system to maximize reservoir contact during horizontal drilling, important for underground gas storage operations. The project supports Dubai's transition towards lower-carbon energy capabilities.

Positive

• Multi-year contract secured for integrated coiled-tubing drilling services
• Expansion of existing business relationship with Dubai Petroleum Establishment
• Additional revenue stream from previously secured ICL units contract

Negative

• None.

Insights

Energy Industry Analyst

Baker Hughes' multi-year contract with Dubai Petroleum Establishment represents a strategic expansion of their footprint in the Margham Gas storage project. This builds on their previous supply agreement for Integrated Compressor Line units, showcasing the company's ability to cross-sell complementary technologies and secure additional business from existing customers.

The deployment of their proprietary CoilTrak™ coiled-tubing bottomhole assembly system highlights Baker Hughes' technological differentiation in a competitive oilfield services market. This system enables more precise horizontal drilling that maximizes reservoir contact – a critical capability for efficient underground gas storage operations.

From a business perspective, this contract demonstrates two key strengths: First, Baker Hughes is successfully leveraging its diverse technology portfolio to deliver integrated solutions spanning both upstream drilling and midstream compression. Second, the company continues building its presence in the strategically important Middle East region, where national energy companies are making significant investments in infrastructure modernization.

While the financial terms remain undisclosed, the multi-year nature of the contract provides Baker Hughes with improved revenue visibility in their Oilfield Services & Equipment segment, which represents a substantial portion of their overall business.

Energy Transition Specialist

This contract positions Baker Hughes at the intersection of conventional energy optimization and low-carbon transition – a strategically valuable space as energy systems evolve. The Margham Gas storage project exemplifies the critical role natural gas infrastructure plays in balancing intermittent renewable generation, specifically enabling Dubai to "switch between natural gas and solar power" as needed.

Underground gas storage facilities like Margham represent essential flexible capacity in increasingly complex energy systems. By improving drilling efficiency and reservoir connectivity through their CoilTrak™ technology, Baker Hughes is helping create the infrastructure necessary for Dubai to increase its renewable penetration while maintaining energy security.

What's particularly notable is how this project repurposes a mature field for new energy transition applications. This approach – maximizing value from existing assets while supporting decarbonization – aligns perfectly with the pragmatic path most regions are taking toward lower-carbon energy systems.

For Baker Hughes, this contract reinforces their strategic positioning as an "energy technology company" rather than simply an oil services provider. By delivering solutions that bridge traditional and emerging energy needs, they're demonstrating adaptability to changing market demands while maintaining relevance in key hydrocarbon-producing regions that are themselves navigating energy transition challenges.

• CoilTrak™ system allows for increased reservoir connectivity through efficient slim-hole multilateral drilling
• Project strengthens Dubai’s low-carbon energy capabilities
• Award follows major order for Baker Hughes’ Integrated Compressor Line (ICL) units
  

HOUSTON and LONDON, March 26, 2025 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Wednesday a multi-year contract with Dubai Petroleum Establishment (DPE), for and on behalf of Dubai Supply Authority (DUSUP), to provide integrated coiled-tubing drilling services for the company’s Margham Gas storage project.

The project will provide stability to Dubai’s energy supply by strengthening the system’s ability to switch between natural gas and solar power.

Providing the coiled-tubing drilling increases Baker Hughes’ overall support of the Margham Gas project, which draws upon the mature field of the same name. Already set to supply the company’s Integrated Compressor Line (ICL) units for gas storage, injection and export, Baker Hughes’ broad portfolio is helping to create a reliable power system with reduced emissions.

“Baker Hughes has built a reputation as a leader in coiled-tubing drilling and mature assets solutions, and we bring a track record of success across the region to this important project,” said Amerino Gatti, executive vice president of Oilfield Services & Equipment at Baker Hughes. “Our integrated solutions approach combines industry-leading technology and expertise across the energy value chain to help DPE scale-up and develop reliable, secure and lower-carbon power solutions for their country.”

The project brings together Baker Hughes’ expertise in integration of coiled-tubing drilling, under-balanced drilling and the company’s industry-leading CoilTrak™ coiled-tubing bottomhole assembly (BHA) system. CoilTrak allows operators to more effectively navigate the subsurface environment during horizontal drilling to maximize reservoir contact, which is crucial for underground gas storage. 

About Baker Hughes
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.

For more information, please contact:

Media Relations

Brian Reynolds
+1 346-315-6663
brian.reynolds@bakerhughes.com

Investor Relations:

Chase Mulvehill
+1 346-297-2561
investor.relations@bakerhughes.com

FAQ

What is the significance of Baker Hughes (BKR) winning the Dubai Petroleum contract?

The contract strengthens Baker Hughes' position in Dubai's energy infrastructure, expanding their role in the Margham Gas storage project while supporting Dubai's transition to lower-carbon energy solutions.

How does the CoilTrak™ system benefit the Margham Gas storage project?

CoilTrak™ enables more effective navigation during horizontal drilling, maximizing reservoir contact and improving underground gas storage efficiency through slim-hole multilateral drilling.

What services will Baker Hughes (BKR) provide for the Margham Gas project?

Baker Hughes will provide integrated coiled-tubing drilling services and Integrated Compressor Line units for gas storage, injection, and export operations.

How does this project contribute to Dubai's energy strategy?

The project enhances Dubai's energy supply stability by improving the system's capability to switch between natural gas and solar power, supporting lower-carbon energy initiatives.