Baker Hughes Company (BKR), a leading energy technology company, and Repsol, S.A. REPYY have announced a strategic partnership. The idea is to develop next-generation artificial intelligence (AI) solutions to optimize oil and gas production. This collaboration is expected to enhance the companies' ability to unlock new efficiencies in the energy sector.

BKR to Leverage AI for Optimized Production

Through this partnership, Baker Hughes and Repsol will focus on developing and deploying AI-driven automation workflows across the latter’s global assets. This innovation is aimed at optimizing oil and gas production by improving operational efficiencies and reducing emissions. The collaboration builds on Repsol’s existing use of Leucipa, an industry-leading digital production software developed by BKR, which leverages data to streamline processes and drive intelligent, efficient operations.

The partnership is likely to strengthen the relationship between BKR and Repsol, with a new memorandum of understanding (MOU) signed on Oct. 11, 2024. Repsol has been an early adopter of Leucipa, integrating the solution across its operations to enhance its digital infrastructure. With this new agreement, BKR aims to accelerate the industry’s digital evolution while creating new commercial opportunities for Leucipa.

BKR’s Leucipa to Drive Emission Reductions

Leucipa is not only about production optimization but also about environmental impact. The AI-powered platform can help operators manage production more proactively and sustainably by automating production workflows. BKR’s solution focuses on minimizing inefficiencies and supporting environmentally conscious operations, helping customers recover barrels that would otherwise remain untapped while reducing carbon emissions.

The collaboration between BKR and Repsol highlights both companies' commitment to harnessing AI for a more sustainable future in energy production.

BKR’s Zacks Rank & Key Picks

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

Investors interested in the energy sector may look at a couple of better-ranked stocks like Archrock Inc. AROC and MPLX LP MPLX. While Archrock sports a Zacks Rank #1 (Strong Buy), MPLX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.