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Baker Hughes (BKR) Signs Deal to Lower Gas Flaring in Iraq

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Baker Hughes Company (BKR - Free Report) has entered into an agreement with state-owned South Gas Company for developing a new project in Iraq, according to the oil ministry.

The agreement is meant for capturing 200 million cubic feet per day of flared gas that will be utilized for generating power. Baker Hughes will be constructing modular gas processing plants that will be involved in processing associated gas from Nasiriyah and Gharaf oil fields, located in the southern Dhi Qar province.

Per World Bank, with the burning of 17.37 billion cubic meters of gas in 2020, Iraq is among the worst in the world in terms of flaring associated gas. This agreement reflects Iraq’s strong focus on reducing gas flaring since the country is under constant pressure from the United States for putting an end to the same.

Preparations for design, manufacturing, and construction have already been started by Baker Hughes and the company expects the accord to consummate by mid-2024. Thus, while helping Iraq to significantly reduce flaring and augmenting gas production, Baker Hughes is well placed to generate significant cash flows. 

It currently carries a Zacks Rank #3 (Hold). Meanwhile, some better-ranked players in the energy space include Whiting Petroleum Corporation (WLL - Free Report) , Continental Resources, Inc. (CLR - Free Report) and Matador Resources Company (MTDR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Continental is expected to witness earnings growth of 428.2% in 2021.

Matador Resources has witnessed upward earnings estimate revisions for 2021 in the past 30 days.