Oil major Shell has withdrawn from talks on building a petrochemicals plant in the southern oil hub of Basra, said Hydrocarbonprocessing.
Shell in a separate statement confirmed it was leaving the project.
A statement from Iraq's oil ministry said Shell would not continue discussions with the Ministry of Industry and Minerals and the Ministry of Oil regarding its role as "a major investor" in the Nebras Petrochemical Project, although it affirmed its continued support for the project through its partnership with Basra Gas Company.
In 2015, Shell signed an outline deal worth $11 billion with Iraq to build the petrochemical complex that would in theory come online within six years and would make Iraq the largest petrochemical producer in the Middle East.
An Iraqi energy official with knowledge of the project talks said financial and contractual issues delayed reaching a final deal with Shell and "caused the initial deal to collapse".
We remind, in early February, Royal Dutch Shell, a prominent Anglo-Dutch oil and gas company, declared force majeure concerning the supply of butadiene to its facility in Norco, Louisiana, USA. Market reports have confirmed the shutdown of a line with a substantial capacity of 265,000 tonnes of butadiene annually. This operational halt is anticipated to persist at least until the conclusion of February, with the precise cause of the disruption remaining undisclosed.
mrchub.com