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 withglobal energy technology company Baker Hughes, with additional talks for amemorandum of understanding in the gas sector.
According toa statement from the office of Iraqi Prime Minister Mohammed Shia al-Sudani,who met with Baker Hughes Chairman and CEO Lorenzo Simonelli in Baghdad, theIraqi government views Baker Hughes as "one of the world's top four energyand oil services companies."
Al-Sudaniemphasized the government's enthusiasm for Baker Hughes to broaden its presencein Iraq, fostering cooperation with both the government and private sector inthe oil and gas industries. He pointed out Iraq's "promising market andplans for major projects, particularly in integrated oil, gas, andpetrochemical sectors."
Al-Sudanialso highlighted the Development Road initiative, which includes oil and gastransport projects, and stressed the importance of completing ongoing efforts,notably the Nasiriyah oil field. Baker Hughes is investing in the field toextract 200 million standard cubic feet of associated gas, with completiontargeted for 2026. The project is expected to play a crucial role in reducinggas flaring and increasing domestic gas production.
The BakerHughes delegation confirmed their commitment to investing in Iraq's oil and gassectors and discussed finalizing the strategic agreement with the Ministry ofOil.
"Thecompany also expressed interest in participating in a gas platform project atGrand Faw Port and indicated a willingness to finance several other initiativesin Iraq." The statement said.
BakerHughes, a global leader in energy technology, has been increasingly involved inIraq's oil and gas industry. The company has strengthened its presence in thecountry through strategic agreements, collaborations, and investmentinitiatives aimed at enhancing Iraq's energy infrastructure.
Last April,the energy technology company announced it had signed a memorandum ofunderstanding (MoU) with Iraq-based Halfaya Gas Company (HGC) to set the basisto establish a collaboration for a gas flaring reduction project at the BinUmar gas processing plant in southeastern Iraq. The signing took place inWashington, D.C., in the presence of Al-Sudani during his official visit to theUnited States.
In 2017,both sides signed a deal for modular Natural Gas Liquids plant solutions forflare gas recovery.
