Shell withdraws from Nebras Petrochemical Project in Iraq

Shafaq News/ The Iraqi Ministry of Industry and Minerals announced on Tuesday that the international company Shell has issued an apology for discontinuing its involvement in the Nebras petrochemical project.

Shell cited a change in its policy regarding investments in petrochemical industries as the reason for its withdrawal.

In an official statement, the ministry revealed that "Dutch Shell Company expressed its apology for ceasing discussions with the Ministry of Industry and Minerals and the Ministry of Oil as a major investor in the Nebras Petrochemical Project." However, Shell affirmed its ongoing support for the Project by partnering with the Basra Gas Company.

In response, Prime Minister Muhammad Shia Al-Sudani has directed the Ministries of Industry and Oil to explore alternative options. This directive follows the signing of an investment contract with the French company TotalEnergies.

The government will also reassess the Project's size, design capacity, and other technical details.

The Nebras Petrochemical Project is a large-scale project establishing a massive petrochemical industry in Basra.

The Project aims to produce approximately 2 million tons of petrochemicals annually, utilize surplus natural gas to create products like polyethylene, support plastic and rubber industries, generate significant financial revenue, and create over 40,000 jobs, boosting Iraq's economy.