Gulf Oil and Gas accountACCOUNT

Baker Hughes, GE Sign Contract with Iraq to Process Natural Gas at Two Fields

Source: Reuters 4/2/2018, Location: Middle East

Share |
Baker Hughes and General Electric signed a contract with Iraq’s government to process natural gas extracted alongside crude oil at two fields in southern Iraq, the oil ministry said.

The plan was first announced by GE last July and is part of Iraq’s efforts to stop flaring gas associated with oil by 2021. Iraq continues to flare some of this gas because it lacks the facilities to process it into fuel for local consumption or exports.

Gas flaring costs nearly $2.5 billion in lost revenue for the government and would be sufficient to meet most of needs for gas-based power generation, according to the World Bank.

The contract with Baker Hughes and GE provides for processing the gas at the Nassiriya, Al Gharraf oilfields. It is the second contract signed by Iraq to process gas associated with oil, after one with U.S. energy firm Orion in January.

Iraq’s production of associated gas is expected to grow as the country increases its oil output capacity.

The Iraqi cabinet approved a plan to raise the nation’s crude oil output capacity to 6.5 million barrels per day by 2022, from about 5 million bpd now.

The country is currently producing about 4.4 million bpd, below its capacity, in line with an agreement between the 14-member Organization of Petroleum Exporting Countries and other exporters including Russia to cut supply to boost oil prices.

OPEC’s second-largest producer, after Saudi Arabia, Iraq plans to award oil and gas exploration and development contracts in 11 new blocks on April 15.

The Iraqi government depends on oil and gas sales for about 95 percent of its income.

Gas Processing >>

Gas Processing News in Iraq >>

Iraq >>  6/5/2018 - By the presence of Mr. Jabbar Ali Al-Luiebi the minister of oil… the ministry of oil signed on 4 June three new initial contracts with two Chinese com...
Saudi Arabia >>  6/4/2018 - Saipem has been awarded a Pipeline Project in the E&C Offshore sector in the Middle East worth approximately 1.3 billion USD. ...

Saudi Arabia >>  5/27/2018 - Saudi Aramco signed the Unconventional Gas Stimulation Services contract with Halliburton to further improve the economics of Saudi Aramco’s Unconvent...

Related Categories: Deodorization system  Gas dehydration  Gas sweetening  Gas Treating  General  GTL Processing  LNG Processing  LPG Domestic use  LPG Odorless  Packing  Phase Separation  Scrubbers 

Related Articles: Gas dehydration  Gas sweetening  Gas Treating  General  GTL Processing  LNG Processing  LPG Domestic use  LPG Odorless  Packing  Phase Separation  Scrubbers 


Iraq Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 |

Oil & Gas Projects in Iraq >>

More News

 

Oil & Gas Companies in Iraq >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.