Iraq is negotiating Shell to increase its contribution to a giant petrochemical project

Iraq is negotiating Shell to increase its contribution to a giant petrochemical project


Release date: 2017/5/21


An official at the Ministry of Industry and Minerals of Iraq, talks with the Dutch Shell Energy giant to increase the proportion of Iraq's contribution to the establishment of investment project [Nebras] in the field of petrochemical industries.
"The Ministry of Industry and Minerals held a new round of talks with Dutch Shell, which included a number of technical, financial and legal issues related to the implementation of Nabras investment project in the field of petrochemical industries and the possibility of creating success factors in the presence of Deputy Chairman of the project management committee in the ministry Abdul Karim Abdel Wahab and a number of specialists with the delegation of Shell International ".
"The meeting discussed the obstacles and problems surrounding the allocation of land and the cost of raw materials needed to run the project and put forward proposals and treatments to overcome these obstacles and solve them," the statement quoted Abdel Wahab as saying.
He added that "ways have also been discussed to reduce the cost of the project, which is estimated at about 8 billion dollars and increase the contribution of the Iraqi side in the project, where the proportion of the contribution of Shell about 76%, while the contribution of the Ministry of Industry about 24% as the Iraqi partner of Shell International."
Abdul Wahab said that "the agreement with the partnership is to establish the largest petrochemical complex in the region and a period of completion ranging from 5 to 6 years, which will make Iraq one of the largest producers of petrochemicals in the Middle East and achieve profits estimated at about 90 billion dollars over the lifetime of 35 years and provides about 40,000 jobs. "
He pointed out that "discussing during the discussions to a lot of technical matters related to the production units of the project and its service units and schedules of work progress, which go according to the planned schedules," adding that "was taken a number of decisions that contribute to speed up work in addition to the possibility to update and discuss paragraphs of the law Investment according to modern international standards for industrial investments, as well as discuss a new law that includes the establishment of holding companies in Iraq. "
The Ministry of Industry pointed out that "a meeting has already been held between the Ministry of Industry and the local government of Basra to find solutions and overcome obstacles and accelerate the allocation of land project and the preparation of the scheme of its own network," adding that "negotiations are still underway with the Ministry of Oil to enter as a strategic partner in the project beside the Ministry of Industry In order to achieve the largest economic returns to the country through this project. "

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