Page 26 - Baker Hughes REPORT - MARCH 2024

3/15/24, 1:51 PM Baker Hughes and bp: Pioneering the future of eco-friendly flaring - Oil & Gas Middle East
This breakthrough comes at a crucial time, particularly in regions like the Middle East, where
flaring practices have long been a cause for environmental concern. Countries such as Iraq
face significant challenges with flaring, contributing to both environmental pollution and

economic losses due to the wasteful burning of natural gas.

The introduction of technologies like flare.IQ not only presents a solution to accurately
monitor and reduce emissions but also aligns with global efforts to combat climate change

and promote energy sustainability.

Flaring in the Middle East, especially in Iraq’s southern regions, is a multifaceted problem
that impacts the environment, health, and economy. Iraq, a country with some of the world’s
largest oil and gas reserves, faces a paradoxical situation where it simultaneously flares a

significant portion of its natural gas and suffers from chronic power shortages requiring gas
imports, primarily from Iran.

This situation is exacerbated by environmental and health consequences due to the

pollutants released by flaring activities.

bp has spun off its operations in Iraq by setting up a joint venture with PetroChina to
manage Iraq’s largest oilfield, Rumaila. This joint venture, named Basra Energy Co. Ltd., is

created alongside the Iraqi state-held Basra Oil Company. It aims to allow BP and PetroChina
to continue investing in the oilfield’s operations, with the venture set to operate Rumaila
through 2034, when the current contract expires.

The formation of this new joint venture was approved by the Iraqi government and is part of
bp’s broader strategy to invest more in low-carbon energy sources and become a net-zero
business by 2050. Rumaila is one of the world’s largest oilfields, producing 1.4 million barrels

a day in 2020.

The field is crucial for Iraq’s oil output, contributing significantly to the country’s production.
bp’s move to form a joint venture reflects a broader strategy within the industry towards

reducing emissions and shifting focus towards cleaner energy production while managing
traditional oil assets through new operational structures.

Iraq contributes significantly to global methane emissions, with flaring in its oil fields
releasing not only methane but also black carbon, leading to air pollution, respiratory

diseases, and contributing to global warming. Efforts to reduce methane emissions are seen
as cost-effective measures to combat global warming, with the potential to avert nearly

0.3°C of global warming by 2045 by cutting human-made methane emissions by 45% this

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