Iraqi Prime Minister chairs meeting to address Nebras Petrochemicals project
The Iraqi Prime Minister, Mohammed Shia Al-Sudani, led a crucial meeting on Sunday aimed at facilitating the completion of the Nebras petrochemical Project.
The gathering, convened to discuss strategic aspects of the project, focused on appointing a consulting body tasked with overseeing technical intricacies, specifications, and the quality designs and manufacturing units, as per a statement issued by the Prime Minister’s Office (PMO).
During the session, Al-Sudani underscored the imperative of finalizing the settlement with Shell, the incumbent entity involved in the project, thereby paving the way for other international companies to assume responsibility for this significant endeavor. In alignment with the requisite standards and specifications mandated for the project facilities, the Iraqi Prime Minister further instructed the Ministry of Oil to furnish a comprehensive report detailing foreign corporations expressing interest in undertaking the project’s execution.
Shell’s recent announcement that it would not proceed with the Nebras petrochemicals project, following a comprehensive evaluation conducted in collaboration with Iraqi government partners, triggered the need for swift action. Emphasizing a commitment to supporting the diversification of Iraq’s economy, Shell reiterated its dedication to the nation’s energy sector. Despite withdrawing from the Nebras project, Shell affirmed its continued collaboration with the Iraqi government through a partnership with the Basra Gas Company (BGC), a pivotal player in Iraq’s gas processing landscape.
The genesis of the Nebras petrochemicals project dates back to 2015 when Shell inked an $11 billion agreement with Iraq, envisioning the construction of a state-of-the-art petrochemical complex. The venture, slated to commence operations within six years, held the promise of positioning Iraq as the premier petrochemical producer in the Middle East. However, an Iraqi official within the oil sector, speaking to Reuters, cited financial and contractual hurdles as impediments to reaching a definitive agreement with Shell.
In light of these developments, Iraqi authorities are now actively seeking alternative avenues to advance the Nebras petrochemicals project. With deliberations underway and a renewed focus on engaging potential international partners, Iraq remains steadfast in its determination to realize the project’s full potential, thereby bolstering its position in the global petrochemical arena.
