World's Second-Largest Oil and Gas Free Zone Planned for Basra

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Written by Richard Finlayson, Senior International Editor for Industrial Info resources (Sugar Land, Texas)--Iraq is to have a specialized oil and gas free-zone on an 11 million-square-meter site at Khor Al-Zubair in the Basra area. To set up the zone, Iraq's general commission of free zones has entered into a joint venture (JV) agreement with Basra oil and gas hub (BIOGH).

Located adjacent to Basra, Iraq's strategic energy port, the specialized free zone will provide a mixed use site for manufacturing, storage and servicing of the expanding requirements of Iraq's oil and gas sector, said Dr Sabah Al-Qaisi, director general of the free zones commission.

Under the terms of the JV, the commission will carry out all free zone administrative functions and, together with the appropriate entities, facilitate on-site customs clearance and the provision of work permits. The development will provide all the benefits of a free zone for the oil and gas logistics supply chain and will create permanent residential accommodation and recreation facilities for users of the zone, with state-of-the-art security systems providing a secure environment. It will be entirely self-sufficient in terms of power generation, water telecommunications and waste management processing.

BIOGH will be the developer of the project, with responsibility for the construction and design, infrastructure, project financing, marketing and management of the free zone. The BIOGH zone also will provide all users with long term agreements and a fast track process for regulatory approvals. Over an initial period of 12 years, the zone will employ 10,000 Iraqi nationals, and that number will increase with the life of the project. It also will provide substantial economic benefits for the regional economy.

"The creation of the BIOGH free zone is the most significant investment contract entered into by the commission," Al-Qaisi said. "It will be the second-largest oil and gas free zone in the world and will contribute greatly to Iraq's economy by attracting significant foreign direct investment and modern technology."

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