7th APRIL 2015 - Vol.XXXVIII No.018
Business News

South Korean know-how for Iraq oil sector

SEOUL: South Korea, the world's fourth-biggest crude oil buyer, will provide Iraq with oil development technology to boost its chances of getting a slice of lucrative oil projects, the state-run oil firm said yesterday.

Energy-deficient South Korea, which has to import all of its crude needs, is keen to boost its foreign energy assets to secure stable sources of energy and make its manufacturing-driven economy less sensitive to oil prices.

Oil was trading at $60.80 a barrel in Asia, just off a record $62.50 hit on Wednesday.

Korea National Oil Corporation (KNOC) signed a memorandum of understanding with Iraq's oil ministry to provide the latest oil development technology and undertake joint studies into promising oil blocks, state-run KNOC said in a statement.

"We believe maintaining a good relationship with Iraq will help us take part in oil development projects in the Middle Eastern country, leading to broader co-operation in the energy sector," the KNOC statement said.

South Korea reached a preliminary agreement in May last year with British construction and engineering services firm Amec to co-operate in upstream oil projects in Iraq.

KNOC, which spearheads South Korea's overseas energy projects, is engaged in projects in countries including Yemen, Indonesia, Vietnam and Peru, but it does not hold oil-related contracts in Iraq.

Iraq has 115 billion barrels of proven oil reserves, the world's third biggest after Saudi Arabia and Iran, according to data from BP.

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