Shell ends talks over Iraq’s Nebras petrochemical project
by ChemOrbis Editorial Team - content@chemorbis.com
British multinational oil and gas company Shell has withdrawn from negotiations for constructing a petrochemical plant in Basra, Iraq, media sources reported.
Iraq’s oil ministry reportedly confirmed Shell’s withdrawal. Accordingly, Shell will not be a major investor in the Nebras petrochemical project, but it will continue to support the project through its partnership with Basra Gas Company.
An Iraqi official familiar with the project stated that financial and contractual issues ultimately caused the agreement to fall through. Meanwhile, Shell stated that this decision followed the evaluation of the company’s chemicals portfolio.
The initial agreement, signed in 2015, was valued at around $11 billion and aimed to establish a petrochemical complex in Iraq, potentially making the country the largest producer of petrochemicals in the Middle East.
Iraq’s oil ministry reportedly confirmed Shell’s withdrawal. Accordingly, Shell will not be a major investor in the Nebras petrochemical project, but it will continue to support the project through its partnership with Basra Gas Company.
An Iraqi official familiar with the project stated that financial and contractual issues ultimately caused the agreement to fall through. Meanwhile, Shell stated that this decision followed the evaluation of the company’s chemicals portfolio.
The initial agreement, signed in 2015, was valued at around $11 billion and aimed to establish a petrochemical complex in Iraq, potentially making the country the largest producer of petrochemicals in the Middle East.
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