Petronor has been given the go-ahead by the Iraqi Oil Ministry and state-run South Oil Co., Iraq's largest oil utility, to build the city over 500,000 square meters for the first phase, consisting of warehouses, offices, workshops, residential units and a training center.

It gave no details on the value of the contract.

Iraq has awarded mega oil deals worth more than $200 billion in the last two years to firms such as BP PLC (BP), Exxon Mobil Corp. (XOM), Italy's giant producer Eni SpA, Russia's second largest firm OAO Lukoil (LKOH.RS) and China National Petroleum Corp., known as CNPC.

Petronor's energy city is located near the South Oil Co.'s Bergessia base and Basra Airport on land leased from the Oil Ministry and the SOC. It has a future capacity of 5,000 residents and it is already home to several international companies, said the statement, without naming them.

Source: www.dowjones.com