June 3, 2012. Iraq and Chevron Phillips Chemical Co., a joint venture of Chevron Corp. and ConocoPhillips, signed a letter of intent to evaluate the feasibility of developing a petrochemical plant in the country. The company would examine building a new facility and upgrading an existing Iraq-owned petrochemicals factory in southern Basra province. Iraq holds the world's fifth-largest crude reserves and the fifth-biggest natural-gas deposits in the Middle East. The government, which depends on crude sales for more than 90 percent of its official income, wants to diversify into chemicals production and other industries. Iraq's oil output is on the rebound after stagnating for years during the rule of Saddam Hussein, ousted by a U.S.-led invasion in 2003. The nation burns off natural gas produced in association with crude because it lacks the infrastructure to use it as a fuel for electricity plants or feedstock for petrochemicals. Shell Chemicals Ltd. agreed in a separate arrangement to study the feasibility of a petrochemical plant.