Baker Hughes has secured a multi-year contract from Genesis Energy to supply drag-reducing agents (DRAs) for two key offshore oil pipelines serving the U.S. Gulf Coast, Baker Hughes announced on Wednesday, July 30.  

The agreement includes Baker Hughes' FLO product line DRAs, associated management services, and the deployment of its Leucipa automated field production solution to optimize operations.

The DRAs will support the transportation of light and heavy crude from offshore platforms to storage and refining facilities in Texas and Louisiana via the Cameron Highway Oil Pipeline and Poseidon systems, in which Genesis Energy operates and holds a 64% ownership stake. 

Baker Hughes stated that the use of DRAs and midstream solutions will significantly increase the capacity of these pipelines, allowing for increased oil production and enhanced crude slate flexibility in the Gulf. 

While the financial terms of the contract were not disclosed, Amerino Gatti, executive vice president of oilfield services and equipment at Baker Hughes, emphasized the importance of midstream capacity keeping pace with growing energy demand. 

"By utilizing DRAs to reduce friction... as well as AI to optimize their operation, Genesis can increase its capacity without the need for large investments of time and capital," Gatti said.

In a separate development earlier this month, Baker Hughes signed a memorandum of understanding (MoU) with Petroliam Nasional Berhad (Petronas) to explore strategic business initiatives in Asia. 

This partnership aims to support Asia’s energy expansion and transition by enhancing local supply chain capabilities and implementing various technology solutions.

Potential initiatives include expanded liquefied natural gas (LNG) services, cross-border talent development, exploration and production solutions, and digital solutions like artificial intelligence. 

The companies also plan to explore sustainable energy solutions such as carbon capture, utilization, and storage (CCUS), lubricants, and biofuels. 

The latest contract adds to the list of pipeline projects undertaken by the company in recent years. One of the company’s recent projects includes a major pipe system contract for Brazil’s offshore gas fields.