Baker Hughes Deepens Pakistan Footprint With OGDC's Multi-Year Deal

Baker Hughes Company BKR has secured a multi-year contract from Oil & Gas Development Company (OGDC) to help improve production from mature oil and gas fields in Pakistan. The agreement extends a decades-long relationship between the companies and supports Pakistan’s efforts to increase energy supply from domestic resources.

The work will cover more than 120 wells across the Tando Alam Oil Complex and Pirkoh field. Baker Hughes will initially evaluate field-level challenges and prepare redevelopment plans linked to OGDC’s production and economic targets. The company will also recommend integrated technology and digital solutions to improve production performance and increase recovery from these existing assets.

Technology Supports Production Improvement

Once the evaluation is complete, the project will be moved into operational execution. Baker Hughes plans to use solutions including artificial intelligence (AI)-enabled chemical injections to improve flow assurance, along with well workovers and intervention services designed to restore output from underperforming wells.

The contract highlights BKR’s ability to combine digital tools, technical expertise and field services in a single offering. This integrated approach can help OGDC extract more value from mature assets while giving Baker Hughes a broader role across multiple stages of the redevelopment program.

How the OGDC Deal Benefits Baker Hughes

For Baker Hughes, the multi-year nature of the contract adds greater visibility into future activity within its oilfield services & equipment business. Since the project covers evaluation, technology deployment, well intervention and production optimization, BKR stands to benefit from multiple revenue streams as work progresses.

By expanding its presence in Pakistan and deepening ties with a major domestic energy producer, Baker Hughes strengthens its business model and enhances long-term investment appeal. Successful execution is expected to improve BKR’s prospects for follow-on work with OGDC and demonstrate its mature-field capabilities to other operators facing similar production challenges.

Investment Case Gains Another Growth Driver

The agreement reinforces Baker Hughes’ strategy of using technology and integrated services to address complex customer needs. Growing demand for higher production from existing fields can create further opportunities for such solutions. The OGDC contract therefore adds to BKR’s long-term commercial pipeline while supporting recurring service activity and wider adoption of its production technologies.

BKR’s Zacks Rank & Key Picks

Baker Hughes currently carries a Zacks Rank #3 (Hold).

The OGDC contract highlights how sustained upstream investment can create opportunities for oilfield technology and service providers. With West Texas Intermediate (“WTI”) crude prices above $90 per barrel, according to Oilprice.com, exploration companies are well-positioned to maintain drilling activity, boost recovery from existing fields and invest in production infrastructure.

This backdrop is likely to support demand for companies offering drilling tools, completion services, offshore solutions and production technologies. Therefore, alongside Baker Hughes, Drilling Tools International Corporation DTI, RPC, Inc. RES and Oceaneering International, Inc. OII stand to benefit.

DTI currently sports a Zacks Rank #1 (Strong Buy), while RES and OII carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks Rank #1 stocks here.

Drilling Tools manufactures and rents downhole tools used in oil and natural gas wells, giving it direct exposure to drilling activity. A supportive commodity-price environment can encourage producers to sustain or increase field spending, benefiting demand for DTI’s tools. Despite softer North American land activity and Middle East disruptions, the company generated $4.1 million of adjusted free cash flow in the second quarter of 2026, with management also pointing to improving activity across several markets.

RPC’s range of completion and production services positions it to participate in higher oilfield activity when producers step up spending. Its offerings span pressure pumping, wireline, cementing and downhole tools, providing exposure across several stages of well development. RES reported second-quarter 2026 revenues of $460.9 million, up 1% sequentially, while adjusted EBITDA increased 23.3% to $66 million on a better job mix and stronger activity across several service lines.

Oceaneering International provides engineered products, services and robotic solutions for offshore energy operations. Greater offshore investment is likely to support demand for OII’s subsea technologies and manufactured products. In the second quarter of 2026, revenues rose 10% to $768 million and adjusted EBITDA increased 11% to $115 million. Its Manufactured Products backlog stood at $445 million at June-end, with additional orders expected in the second half.

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