Denmark’s Phoenix International A/S signed a contract to build and operate an $86 million pipeline factory in southern Iraq, company and government officials said.
The plant will produce pipes for transporting oil, natural gas and water, Rene Koch, the company’s chief executive officer, said today in an e-mailed statement. The factory in the town of Um Qasr in the southern province of Basra is licensed for 35 years, said Khalaf al-Badran, president of the Basra investment committee, according to the statement.
Kameran Khisro Kiani, the company’s director in Iraq, said the project would create 300 jobs in the province and save time for the Oil Ministry when it needs to buy pipes, including those required for single-point mooring facilities for tankers loading crude in the Persian Gulf. The ministry has installed two such offshore units and plans at least two more.
Iraq is rebuilding its oil industry after years of warfare, economic sanctions and neglect. The country is the third-largest producer in the Organization of Petroleum Exporting Countries after Saudi Arabia and Iran, and it plans to hold a fourth auction of energy-exploration licenses next week in Baghdad.
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