Iraq invites Lukoil and Total into petrochemistry

Iraq is still going to convince Lukoil and Total to build a petrochemical plant near Basra. The companies don’t officially abandon the project, but postpone it for the next decade. Caution of the investors can be explained not only by the unstable situation in the region and low oil prices, but also by the fact that Baghdad has forced oil companies to revise the parameters of their projects, requiring to reduce the amount of reimbursed investments.

In the coming weeks, the Iraqi Oil Ministry will hold talks with Lukoil and France's Total on the construction of the petrochemical plant in the country, the Bloomberg reported with reference to the Deputy Minister of Industry of Iraq Adel Kareem. The official didn’t specify the cost of the project and the launch date, but noted that the capacity would be lower than at the Shell’s project (1.8 million tons per year). The company has already signed a contract with Baghdad for $11 billion for the construction of the petrochemical plant in Basra, the launch of which is planned after 2020. The establishment of an enterprise with the participation of Lukoil was also previously discussed there.