South Korea is seeking to sign a contract
with the United Arab Emirates next year to take part in a massive
oil field development project, a first step to realize a deal
guaranteeing Seoul's right to at least 1 billion barrels of UAE
crude, officials said Wednesday [21 November].
Last year, the two countries signed a memorandum of understanding
that entitles South Korean firms to secure at least 1 billion
barrels of crude from existing oil fields in the Middle Eastern
nation. The agreement also gave South Korea a separate right to
develop three undeveloped fields.
On Wednesday, officials from the government and the state-run
Korea National Oil Corp. (KNOC) briefed President Lee Myung-bak that
a KNOC-led consortium is pushing to sign a contract next year with
Abu Dhabi National Oil Company (ADNOC) to take part in developing a
huge onshore oil field.
The field is estimated to hold 371 million barrels of oil, and
its daily production amounts to 1.37 million barrels. The existing
contract to develop the field expires next year, and South Korea is
trying to gain a share when the contract is renewed, officials said.
In July, KNOC submitted documents for a preliminary qualification
review, officials said.
Separately in March, a South Korean consortium led by KNOC also
signed a contract with the Abu Dhabi National Oil Co. to jointly
develop three untapped oil fields in the UAE, which are expected to
yield up to 43,000 barrels of oil per day.
KNOC President Suh Moon-kyu reported to Lee that production from
the fields could begin in 2014.
Lee, who arrived in Abu Dhabi on Tuesday night, is scheduled to
discuss the oil development and other cooperation projects in summit
talks with UAE President Sheikh Khalifa Bin Zayed Al Nahyan later
Wednesday.
Lee also plans to attend the groundbreaking ceremony for two
nuclear reactors, the Barakah nuclear power plant units 1 and 2, to
be built by South Korean firms. Abu Dhabi's Crown Prince Sheikh
Mohammed bin Zayed Al Nahyan will also attend the ceremony.
After the summit, the two sides plan to sign a main contract on a
joint project to stockpile 6 million barrels of crude in South
Korea's southern city of Yeosu, with Seoul having the priority right
to buy the oil when supplies become dangerously unstable.
