(In paragraph 4, Iraq Ports Authority clarifies BP will pay(not be paid) around $7 for each cubic metre of refined productsexported or imported)
* BP to build terminal in Iraqi waterway
* Terminal for refined oil products imports, exports infuture
By Aref Mohammed
BASRA, Iraq, April 30 (Reuters) - British oil major BP has signed a deal with Iraq to build a new terminal atthe southern port of Khor al-Zubair, a move showing theOPEC-member is seeking the help of international oil firms toupgrade its outdated infrastructure.
A spokesman at the General Company for Ports of Iraq, toldReuters the company had signed a five-year contract with BP thisweek to build a new terminal replacing an outdated one and thatthe company had officially taken over the site Tuesday.
BP declined to give financial details of the contract.
"BP will help Iraq build an advanced terminal to receiverefined oil product shipments and also to export products infuture," Anmar al-Safi said. "BP will pay around $7 for eachcubic meter of imported and exported refined products throughthis terminal."
Iraq relies on imports to meet demand for oil products suchas gasoline as its own refineries struggle, and more than 1.5million tonnes of refined products are delivered over a year,which could generate billions of dollars for BP over the periodof the terminal contract.
In 2009, BP and China's CNPC signed a service contract withIraq to develop the Rumaila field, the workhorse of Iraq's oilindustry which has estimated reserves of 17 billion barrels andcurrently produces around 1.35 million bpd - more than a thirdof Iraq's total output of around 3 million bpd.
The contract was one of a series awarded by Iraq to foreignfirms that could one day more than quadruple its oil outputcapacity to 12 million barrels per day, rivalling oil giantSaudi Arabia.
"This is an important step forward for BP, we are workingwith the Ministry of Transport in Iraq to help meet thecountry's demand for refined oil products," said Paul Reed, CEOof BP's integrated supply and trading business.
A BP spokesman said the initial phase to build the newterminal at Khor al-Zubair would involve using an existingimport facility and improving efficiency to bring in highervolumes of oil products.
"The facility will be constructed over a number of phasesand we expect that imports will commence in 12 to 18 months'time," a spokesman for BP said.
Neglect and under-investment, combined with red tape,corruption and bureaucracy have left Iraq's southern ports nearBasra ill-equipped to deal with the demands of oil majors tryingto pour tonnes of equipment into Iraq and limit the capacity ofterminals used to unload fuel imports purchased to meet growingdomestic need.
BP (BP.)