Equinor Taps Baker Hughes For Multi-Year Plug And Abandonment Deal In North Sea
Baker Hughes Co. (NASDAQ:BKR) announced Wednesday that it has been selected by Equinor ASA (NYSE:EQNR) to lead a plug and abandonment (P&A) project in the Oseberg East field on Norway’s continental shelf.
The initiative marks the first assignment under a multi-year framework agreement between the two energy companies for integrated well services.
As part of the agreement, Baker Hughes will utilize its Mature Assets Solutions portfolio to manage the planning and execution of plug and abandonment operations.
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The integrated approach aims to reduce costs and enhance efficiency through advanced technology and centralized expertise.
Amerino Gatti, executive vice president of Oilfield Services & Equipment at Baker Hughes, said the company is fully prepared to manage each stage of the P&A process. “Through collaboration, technology, and integration, we’ll help Equinor achieve its well abandonment goals in a cost-effective and optimized way,” he said.
Preparations are already underway, with execution set to begin in 2026. Baker Hughes will also open a P&A Center of Excellence in Bergen and Stavanger to coordinate operations and streamline technical oversight across the North Sea.
The company’s toolkit for well abandonment includes proprietary technologies such as PRIME Powered Mechanical Applications, CICM (Casing Integrity & Cement Mapping), the MASTODON™ casing retrieval system, and the Xtreme SJI mechanical slotting tool – designed to enable safe, efficient well closures while limiting environmental impact.
Separately, Baker Hughes recently sold its sensors unit to Crane Company for $1.15 billion, part of a broader strategy to sharpen its focus on core operations.
Energy ETFs with exposure to Baker Hughes and Equinor include the Energy Select Sector SPDR Fund (NYSE:XLE) and the iShares Global Energy ETF (NYSE:IXC), which may reflect developments in the global energy infrastructure landscape.
Price Action: BKR shares were trading lower by 0.08% to 39.05, and EQNR was up 1.33% to $25.56 at last check Wednesday.
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