By John Lee.
Reuters reports that BP has signed a deal with Iraq to build a new terminal at the port of Khor al-Zubair.
Anmar al-Safi, spokesman at the General Company for Ports of Iraq, told Reuters:
"BP will help Iraq build an advanced terminal to receive refined oil product shipments and also to export products in future ... BP will pay around $7 for each cubic meter of imported and exported refined products through this terminal."
He added that the company had signed a five-year contract with BP this week to build the new terminal, replacing an outdated one, and that the company had officially taken over the site on Tuesday.
Paul Reed (pictured), CEO of BP's integrated supply and trading business, said:
"This is an important step forward for BP, we are working with the Ministry of Transport in Iraq to help meet the country's demand for refined oil products."
According to the report, the deal could generate billions of dollars for BP.
A BP spokesman said the initial phase to build the new terminal at Khor al-Zubair would involve using an existing import facility and improving efficiency to bring in higher volumes of oil products.
"The facility will be constructed over a number of phases and we expect that imports will commence in 12 to 18 months' time," he said.