Iraq - After 10 years of discussions, Shell backs out of talks to build petrochemicals plant in Iraq

Should we be looking into investing in Shell? 

After nearly 10 years of trying, Shell (NYSE:SHEL) has ended talks on building a petrochemicals plant in Basra, Iraq's southern oil hub.

According to Iraq's oil ministry, Shell (SHEL) will end discussions regarding its role as "a major investor" in the Nebras petrochemicals project, but it will also continue to support it through its partnership with Basra Gas Co.

As part of the Nebras project, Shell (SHEL) signed an initial agreement in 2015 to build a petrochemical complex worth $11 billion in Basra, which would make Iraq the world's largest petrochemical producer, but a final deal stalled due to financial and contractual problems.

A major blow to Iraq's aspirations to attract foreign investment into its energy sector is Shell's (SHEL) exit.