Iraq is set to launch the Nibras project in the coming days, according to the project’s manager, Hussein Ali. The project, a joint venture with Royal Dutch Shell, involves the construction of the largest petrochemical plant in the region at a cost of almost $8.5 billion, Zawya Projects reported.
The petrochemical plant, based in Basra, will have a production capacity of around 1.8 million tonnes per year and is expected to generate net earnings of nearly $1.4 billion annually, making it the world’s fourth-largest petrochemical complex.
Shell will own 49 percent of the project’s shares, while Iraq’s Oil and Industry Ministries will control 51 percent,.
The project was initially signed in 2015 but was delayed by cash shortages and internal conflicts. The project will allow Iraq to utilize its vast gas resources and generate additional projects in Basra, turning the country into a major petrochemical producer.
Ali expects the foundation stone to be laid within a few days, and the project is expected to be completed within 5-6 years, generating total revenues of around $90 billion during its 35-year operational period.
Iraq, TotalEnergies to begin $27 billion project
Earlier this week, Iraq said it expects TotalEnergies to begin operations on a long-delayed $27 billion oil, gas, and renewables project in the second half of 2023 after finalising side-contracts with a state oil company.
Basim Mohammed, Iraqi deputy oil minister for upstream affairs, said TotalEnergies and the Basra Oil Co “are now in the process of finalising some contractual procedures and documents necessary to activate the contract.”