Baker Hughes set to finalize strategic agreement with Iraq, eyes gas investment

Shafaq News/ Iraq's Ministry of Oil is finalizing a strategic framework agreement with global energy technology company Baker Hughes, with additional talks for a memorandum of understanding in the gas sector.

According to a statement from the office of Iraqi Prime Minister Mohammed Shia al-Sudani, who met with Baker Hughes Chairman and CEO Lorenzo Simonelli in Baghdad, the Iraqi government views Baker Hughes as "one of the world's top four energy and oil services companies."

Al-Sudani emphasized the government's enthusiasm for Baker Hughes to broaden its presence in Iraq, fostering cooperation with both the government and private sector in the oil and gas industries. He pointed out Iraq's "promising market and plans for major projects, particularly in integrated oil, gas, and petrochemical sectors."

Al-Sudani also highlighted the Development Road initiative, which includes oil and gas transport projects, and stressed the importance of completing ongoing efforts, notably the Nasiriyah oil field. Baker Hughes is investing in the field to extract 200 million standard cubic feet of associated gas, with completion targeted for 2026. The project is expected to play a crucial role in reducing gas flaring and increasing domestic gas production.

The Baker Hughes delegation confirmed their commitment to investing in Iraq's oil and gas sectors and discussed finalizing the strategic agreement with the Ministry of Oil.

"The company also expressed interest in participating in a gas platform project at Grand Faw Port and indicated a willingness to finance several other initiatives in Iraq." The statement said.

Baker Hughes, a global leader in energy technology, has been increasingly involved in Iraq's oil and gas industry. The company has strengthened its presence in the country through strategic agreements, collaborations, and investment initiatives aimed at enhancing Iraq's energy infrastructure.

Last April, the energy technology company announced it had signed a memorandum of understanding (MoU) with Iraq-based Halfaya Gas Company (HGC) to set the basis to establish a collaboration for a gas flaring reduction project at the Bin Umar gas processing plant in southeastern Iraq. The signing took place in Washington, D.C., in the presence of Al-Sudani during his official visit to the United States.

In 2017, both sides signed a deal for modular Natural Gas Liquids plant solutions for flare gas recovery.