Iraqi Economists Network

شبكة الاقتصاديين العراقيين

Latest Economy News

Iraq looks for companies to replace Shell in Nebras petrochemicals project

Baghdad ( – The Iraqi Prime Minister, Mohammed Shia Al-Sudani, chaired a meeting on Sunday to discuss the completion of the Nebras petrochemical Project.

The meeting addressed the appointment of a consulting body to handle the technical details, specifications, and quality designs and manufacturing units, according to a statement released by the Prime Minister’s Office (PMO).

Al-Sudani directed the Ministry of Industry and Minerals to finalize the settlement with Shell, opening the door for other international companies to take on this significant project.

In compliance with the requirements and standards needed for the project facilities, the Iraqi Prime Minister also gave the Ministry of Oil instructions to submit a report on foreign corporations interested in taking on the responsibility for carrying out the project.

Shell mentioned last week that it decided not to move forward with the Nebras petrochemicals project after it carried out an in-depth evaluation of the project with partners in the Iraqi government.

Additionally, Shell 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 Iraq’s energy sector through a partnership in a joint venture with the Basra Gas Company (BGC), the main gas processing entity in Iraq.

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.

Source: Iraqi News, 19. February 2024

Comment here

%d bloggers like this: