Shell withdraws from Iraq petrochemical project amid global chemicals review

SINGAPORE (ICIS)–Shell has withdrawn from the Nibras petrochemical project in Basra province, Iraq as the Anglo-Dutch energy giant continues to assess its chemicals portfolio, a company spokesperson said on Wednesday.

The Nibras petrochemical project was first cemented in 2015 and was expected to have around 2m tonnes/year of capacity.

“After in-depth evaluation on the feasibility of the Nebras integrated petrochemicals complex with our [Iraqi] Government partners, Shell has decided not to proceed with the project,” the spokesperson said in an e-mailed statement to ICIS.

“This decision is in line with Shell’s focus on performance, discipline and simplification, and on the high-grading of our chemicals portfolio.”

“Shell will continue to support our partners in the Iraqi government in their efforts to diversify the Iraqi economy.”

The company will continue to play a role in Iraq via its partnership in the Basra Gas Co joint venture as the main gas processing entity in Iraq, the spokesperson added.

In Singapore. Shell is currently seeking buyers for its oil refining and petrochemicals plant in Bukom and on Jurong Island, following a review of its operations in the petrochemical sector amid declining profits.

In Pakistan, the company sold in November last year its 77.4% stake in Shell Pakistan Ltd (SPL) to Saudi Arabia’s Wafi Energy for an undisclosed amount, marking Shell’s exit from the south Asian country.

The sale of SPL, – which markets petroleum products and compressed natural gas, as well as blends ad markets various kinds of lubricating oils – is expected to be completed by the fourth quarter of 2024.

Thumbnail image: Iraq capital Baghdad on a world map – 8 April 2021 (Jeppe Gustafsson/Shutterstock)