PPP proposed for oil and gas
Framework revolves around
The Secretary General of Higher Council for Privatization, Ziad Hayek proposed a comprehensive framework for a potential partnership between the private and public sectors (PPP) in the emerging oil and gas industry. His proposition was released during the oil and gas conference held yesterday in Phoenicia Hotel.
The petroleum law regulates offshore activities of companies catering to oil activities. Hayek saw that the most likely application of PPP is in land support facilities, or what he called a ‘Special Service Zone.’
The zone would cater to the needs of oil producers and service companies through procurement and logistics, sharing of facilities and services, and establishing a regional distribution center.
According to the PPP proposal, the range of support services dedicates a land area for logistics facilities such as workshops, warehouses, yards, and offices. He calls for setting up an area for marine vessels and another for maintenance and support.
Hayek gave two examples of PPP that have been tested and successfully implemented in Nigeria, and more recently in Iraq. A service zone was created in Nigeria that hosts more than 30 international companies. The private sector manages and operates the zone, while the public sector offers a range of concessions and incentives. In Basra, Iraq, the zone is a joint venture between a private developer and public authorities based on a 50-year contract.
Reported by Yassmine Alieh
Date Posted: Dec 05, 2013