KAR Motors First to Begin Operations at Petronor’s Iraq Energy City

Petronor, KAR Motors Enthusiastic About Growing Market Opportunities in the Basrah Region

BAGHDAD, IRAQ and DUBAI, U.A.E -- (November 11th, 2010) - KAR Motors, a Toyota Authorized Service Station, located in and focusing on sales and service in Iraq, and Petronor FZE, an oilfield services company operating in Iraq, announced today they have signed a letter of commitment for KAR Motors to become the first business operating in Iraq Energy City, a next-generation oilfield services supply base located near Basrah. While the region is poised for explosive growth resulting from the billions of dollars in oil contracts awarded by the Iraqi government, a key concern has been the lack of secure living and working environments and the high start-up costs. The Iraq Energy City base has provided a unique solution to these barriers and KAR Motors agrees.

"We can meet the growing demand of our clients in the South by setting up our facility in Iraq Energy City and building on our success in Baghdad" said Bernard Horrocks, General Manager of KAR Motors. "The location is ideal for us to provide Toyota authorised service and maintenance, as well as Toyota Genuine Spare Parts and support to all makes of fleets. This is an exciting move into the South of Iraq for KAR Motors, and with the boom surrounding the oil and gas activity we aim to be there with a permanent business for the long-term."

There has been intense interest in the Iraq Energy City concept from major oil and oilfield companies looking to begin operations in the region, combined support and encouragement from all sectors of the Iraqi government. In particular, the Iraq Ministry of Oil has been promoting Iraq Energy City as a way for smaller businesses to side-step the often high start-up costs to beginning operations in Iraq. With a solid infrastructure in place and a priority focus on security, Iraq Energy City is poised to become a key base for oilfield supplies and support services.

"We are very excited that KAR Motors is our first long-term client to sign-up and begin operations at Iraq Energy City," said Peter Day, CEO of Petronor Group. "They demonstrate clear forward-thinking by moving quickly to establish a presence in the Basrah area. We are looking forward to watching their success."

KAR Motors will initially install a support and service center by December 1, 2010, and has already set plans in motion to develop a full-scale dealership intent on becoming the exclusive Toyota distributor in Iraq.

"Welcoming KAR Motors to Iraq Energy City puts the spotlight on the key advantages we offer," said Hans Hoiskar, General Manager of Petronor Iraq. "Iraq Energy City is ‘move-in ready' with extremely short lead-times to reaching operating mode, or simply securing worry-free, easy-access housing for area oilfield personnel."

The Iraq Energy City base is located on 300,000 sq meters of land leased by Petronor from the South Oil Company (SOC), and is near both Gate 2 of the SOC's Bergessia Base and the Basrah airport. With an effective 40-year lease, Petronor has been developing the base in a logical sequence from temporary, secure units, villas, warehouses and workshops to the eventual development of permanent structures such as office buildings, hotels and recreational centers with an emphasis on enhancing the living experience. With a future capacity for more than 1,000 residents, Iraq Energy City will expand the traditional role of an oilfield supply base by placing an emphasis on the "living experience". Above all, it will provide an ideal location from which international companies can base their operations.
Iraq Energy City is coming online at a very opportune time. Iraq has already awarded contracts worth more than $20 billion to companies such as ExxonMobil, Shell, BP and Eni to develop fields in the Basrah area, and with several more on the way there are indications that Basrah could become one of the most popular upstream destinations over the next two decades.

"We see the demand and excitement growing for Iraq Energy City," said Peter Day. "The initial enthusiasm over the awarding of oil contracts in the region has led to the planning and implementation phase for several of the companies concerned. By offering an attractive, secure and lower entry-cost option, we feel that companies such as KAR Motors will continue to place their confidence in us and base their operations out of Iraq Energy City."

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About KAR Motors
KAR Motors, http://www.kar-iraq.com/, in December 2009, became the first Toyota Authorised Service Station ever in Iraq and has built a growing reputation for quality and service in its existing operations in BIAP, Sulaimanyiah, and Al Arasat, Baghdad. Committed to supplying the highest standards in automotive services, KAR has invested heavily in spare parts stock, trained technicians and specialised tooling to provide Toyota standards to this emerging market.

About Petronor
Petronor, http://www.petronorgroup.com/, is a privately owned company with headquarters in Dubai, UAE. The company was founded in 2001 and provides services to the oil and gas industry in Iraq from its offices in Baghdad and operating bases at Baghdad International Airport and Iraq Energy City, Basrah.

Contact Information:

info@petronorgroup.com

info@kar-iraq.com

Petronor
Emirates Towers
Sheik Zayeed Road
Dubai, United Arab Emirates

ph: +971 4 319 7428
fax: +971 8 448 9752

This release was published on openPR.