In the production of higher hydrocarbons, combining oxidative coupling of methane (OCM) with hydrogenation of the formed carbon oxides in a separate reactor provides an alternative to the currently applied methane conversion to syngas followed by Fischer-Tropsch synthesis. The effects of CH4:O-2 feed ratio in the OCM reactor and partial pressures of H-2 or/and H2O in the hydrogenation reactor were analyzed to maximize production of C2+ hydrocarbons and reduce COx formation. The highest C2+ yield was achieved with low CH4: O-2 feed ratio for OCM and removal of the formed water before entering the hydrogenation reactor.