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Shell nears deal to build $11B petrochemical facility in Iraq

  • Royal Dutch Shell (RDS.A, RDS.B) is nearing a deal with the Iraqi government to build an $11B petrochemical facility in southern Iraq, WSJ reports, citing the Iraqi government.
  • The intention to move forward reportedly follows a meeting between Iraq's prime minister and Shell CEO Peter Voser in Baghdad yesterday; the government says it is about to sign a "heads of agreement" committing both sides to early planning for the project.
  • Shell already has a big presence in Iraq, where it is developing the huge Majnoon oil field, which produced its first oil last month and is now pumping ~200K bbl/day.
Comments (4)
  • These guys are just sad. Haven't learned much from Nigeria. The US will hopefully get some good leadership that will say addios to the Middle East and defending the gulf for Europe and Japan just about the time this $11 Billion elephant goes on line.
    13 Nov 2013, 08:43 AM Reply Like
  • Shell is concentrating risk to an exceptional degree in Iraq. Not having the portfolio of shale resources that CVX and to a lesser extent XOM have accumulated, the European Majors are now forced to take a lot more risk to generate volumetric growth.

     

    Iraq does have the potential to become a potent force in global oil markets and be the 4th largest oil producer in the world, increasing its per capita income and national wealth as geostrategic position notably---unless of course it turns into another Syria and the Kurds secede entirely.
    13 Nov 2013, 08:45 AM Reply Like
  • Indeed, it seems RDS has no risk adjustment department.
    13 Nov 2013, 11:53 AM Reply Like
  • New leadership is desperately needed at Shell.
    13 Nov 2013, 10:38 PM Reply Like
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