Shell exits Iraqi petchem project

Shell has withdrawn from plans to build a petrochemical plant in Iraq's southern Basra region after nearly 10 years, in a blow to Baghdad's aim of driving foreign investment in its energy sector. The major has pulled out following an "in-depth evaluation on the feasibility" of the Nebras complex. Shell will continue to support the project through its Basrah Gas (BGC) joint venture with the Iraqi government and Japan's Mitsubishi. Shell signed an initial agreement in 2015 to develop the project using BGC's associated gas, but it has stalled. Shell has a 49pc stake in the venture estimated at $8bn. BGC will provide ethane feedstock for the complex from its gas processing facilities, with the associated gas coming from the Rumaila, West Qurna 1 and Zubair oil fields.