Page 5 - DMEA Week 07 2023

DMEA COMMENTARY DMEA

SABIC the saviour? provide feedstock for the project as well as elec-
In November 2021, the Iraqi government said tricity generation.
that tangible progress had been made on plans SABIC has been considering an investment
for Saudi Basic Industries Corp. (SABIC) to take in the project since late 2017, with Iraq saying a
a shareholding in the project. few months later that talks were at an advanced
Abdul Jabbar said that a “special memoran- stage between the government, Shell and the
dum” had been drafted for the Saudi firm to take Saudi firm.
an “equal share” alongside the MoI/MoO and Downstream MEA (DMEA) has previously
Shell for the establishment of the $11bn Nebras reported on Shell’s apparent keenness to share
project. the burden of economic and reputational risk
This followed “intensive discussions” involved in Nebras, while the apparent ceaseless
between the parties since April 2020. This would expansion of SABIC – and its parent firm Saudi
presumably require both Shell and the Iraqi joint Aramco – seem to make this a good match.
owners to reduce their shareholding by 25% or Iraq has been pushing to develop its gas
so each. resources, with notable progress made on the
In January last year, speaking about plans Akkas and Mansouriyah ‘free’ gas projects as
to increase economic and trade relations with well as harnessing associated gas from its giant
Riyadh, the secretary general of the Council of oilfields.
Ministers, Hamid Al-Ghazi said that Nebras had Now that progress has been made on marine
“reached advanced stages”, adding that negoti- accessibility, gas pricing and backdated financial
ations are also ongoing for the development concerns, perhaps Nebras is closer to reality than
of Iraq’s Artawi and Akkas gas fields that will ever before.™

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