Shell nears agreement with Iraq to build $11-billion petrochemicals complex
11/13/2013 12:00:00 AM
Shell is closing in on a deal with the Iraqi government to build an $11-billion petrochemical complex in southern Iraq, news reports said on Wednesday.
The plan to move forward on a petrochemical plant follows a meeting late Tuesday in Baghdad between Shell CEO Peter Voser and Iraqi Prime Minster Nouri al-Maliki.
The Iraq government said following the meeting that it will soon sign a "heads of agreement", in which both sides would commit to early planning for the project.
"The heads of agreement will be ready for signing within weeks," the government said in a statement.
In April 2012, Iraq had signed a memorandum of understanding with Shell to carry out a technical and economic feasibility study toward establishing a petrochemicals plant.
Shell already has a presence in Iraq, where it is developing the huge Majnoon oil field near Basra. The Majnoon field produced its first oil last month and is now pumping approximately 200,000 bpd.
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