Shell withdraws from petrochemical project in Iraq

Shell withdraws from petrochemical project in Iraq

The Nebras Integrated Petrochemical Complex project in Iraq is no longer moving further, according to Shell’s decision.

The business stated in a statement that it conducted a thorough assessment of the project with partners in the Iraqi government and ultimately chose not to proceed with it.

Additionally, Shell stated that it will keep helping the Iraqi government’s partners in their endeavors to broaden the country’s economic base and that it will maintain its significant involvement in the country’s energy industry by way of a joint venture with the Basra Gas Company (BGC), which is the country’s primary gas processing company.

As a major investor in the Nebras Petrochemical Project, Shell will no longer hold discussions with the Iraqi Ministry of Industry and the Ministry of Oil, according to a statement released by the Iraqi Oil Ministry. However, Shell affirms that it will still support the project through its partnership with the BGC.

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. According to the source, efforts to resurrect the project were ordered by Mohammed Shia Al-Sudani, the prime minister of Iraq, to get in touch with potential investors.