Iraq looks for companies to replace Shell in Nebras petrochemicals project

Iraq looks for companies to replace Shell in Nebras petrochemicals project

The Nebras Petrochemical Project’s completion was the topic of a meeting on Sunday that was presided over by Iraq’s prime minister, Mohammed Shia Al-Sudani.

According to a statement provided by the Prime Minister’s Office (PMO), the meeting addressed the selection of a consulting organization to manage the technical specifics, requirements, and quality designs and production units.

Al-Sudani gave the Ministry of Industry and Minerals the go-ahead to complete the settlement with Shell, allowing other foreign businesses to bid on this important project.

The Iraqi Prime Minister also instructed the Ministry of Oil to submit a report on international firms interested in taking on the responsibility for carrying out the project, in accordance with the specifications and standards needed for the project facilities.

After conducting a thorough assessment of the project with partners in the Iraqi government, Shell said last week that it has chosen not to proceed with the Nebras petrochemicals project.

Furthermore, Shell declared that it would persist in aiding allies in the Iraqi government in their endeavors to broaden the country’s economic base and maintain a significant presence in the energy industry by means of a joint venture with the Basra Gas Company (BGC), which is the primary gas processing organization in Iraq.

Shell and Iraq struck a $11 billion agreement in 2015 to construct a petrochemical complex that was expected to be operational within six years, making Iraq the Middle East’s largest producer of petrochemicals.

Reaching a final deal with Shell was impeded by contractual and financial concerns, an Iraqi oil sector official told Reuters.