Shell withdraws from petrochemical project in Iraq
Shell’s net profit reached $19.4 billion in 2023
Baghdad (IraqiNews.com) – Shell has decided not to proceed with the Nebras Integrated Petrochemical Complex project in Iraq.
The company said in a statement that it decided not to move forward with the project after it carried out an in-depth evaluation of the project with partners in the Iraqi government.
Shell also said that it will continue to support partners in the Iraqi government in their efforts to diversify the Iraqi economy and will continue to play an important role in the Iraqi energy sector through a partnership in a joint venture with the Basra Gas Company (BGC), the main gas processing entity in Iraq.
A statement released by the Iraqi Oil Ministry revealed that Shell will not continue discussions with the Iraqi Ministry of Industry and the Ministry of Oil regarding its role as a major investor in the Nebras Petrochemical Project, but Shell confirms that it will continue to support the project through its partnership with the BGC.
In 2015, Shell signed a $11 billion deal with Iraq to build a petrochemical complex that was supposed to begin operating within six years and would make Iraq the largest petrochemical producer in the Middle East.
An Iraqi official in the oil sector told Reuters that financial and contractual issues hampered reaching a final agreement with Shell. The official added that the Iraqi Prime Minister, Mohammed Shia Al-Sudani, gave orders to contact possible investors to revive the project.