Baker Hughes Company (BKR), a leading energy technology company, has secured a multi-year contract from Exxon Mobil Corporation XOM to provide specialty chemicals and related services for the Uaru and Whiptail offshore developments in Guyana’s Stabroek Block. The announcement was made at Baker Hughes’ 25th Annual Meeting in Florence, Italy.

Under the contract, BKR will supply all topsides, subsea, water injection and utility chemicals for the Errea Wittu and Jaguar floating production storage and offloading (FPSO) vessels, set to commence production in 2026 and 2027, respectively. The deal highlights the critical role BKR plays in supporting ExxonMobil’s expanding offshore operations.

The Uaru and Whiptail projects represent ExxonMobil Guyana’s fifth and sixth developments in the Stabroek Block. With a combined capacity of 500,000 barrels per day from the two FPSOs, Guyana’s overall production is expected to reach approximately 1.3 million barrels per day. The developments include up to 20 drill centers and 92 production and injection wells, providing a significant boost to the country’s oil sector.

BKR has a well-established footprint in Guyana, supplying turbomachinery for ExxonMobil’s FPSO fleet and production chemicals for the Liza Unity vessel. The new contract builds on this relationship and positions BKR as a key service provider in ExxonMobil’s Guyana operations. Amerino Gatti, Baker Hughes’ executive vice president for Oilfield Services & Equipment, highlighted the company's extensive experience in Guyana’s energy sector and its specialized expertise in oilfield and industrial chemicals, positioning it well to support the complex operations of FPSOs.

The Errea Wittu FPSO is being developed by Offshore Frontier Solutions, a joint venture between MODEC and Toyo Engineering Corporation, based on MODEC’s M350TM newbuild hull. Meanwhile, SBM Offshore is overseeing the construction and installation of the Jaguar FPSO. These projects represent milestones in Guyana’s offshore oil industry and highlight the growing importance of FPSO technology in deepwater oil production.

With ExxonMobil aggressively expanding its operations in Guyana, BKR’s latest contract reinforces its strategic position in the offshore energy sector and signals continued growth opportunities in one of the world’s fastest-emerging oil frontiers.

Zacks Rank & Key Picks

Currently, both Baker Hughes and ExxonMobil carry a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at a couple of better-ranked stocks like SM Energy Company SM and Sunoco LP SUN, presently sporting a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.

Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. Sunoco is poised to benefit from the strategic acquisitions aimed at diversifying its business portfolio.

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