South Korean group signs $2 bn oil deal with UAE

AFP, Sunday 11 Mar 2012

State-run Korean firm will develop three oil fields in the United Arab Emirates with production beginning as early as 2014

A South Korean energy group is to invest $2 billion as part of a project to develop three oil fields in the United Arab Emirates, officials said Monday.

The state-run Korea National Oil Corp. and energy firm GS Energy will hold a combined 40 per cent stake in the $5 billion project, with Abu Dhabi National Oil Co. taking the remaining stake, the Knowledge Economy Ministry said.

The development of the oil fields -- two of them onshore and one offshore -- will start this month, it said, adding that the project is expected to see output of 43,000 barrels per day once production begins as early as 2014.

Under the 30-year deal, South Korea will take 17,000 barrels of oil per day and will be allowed the entire output in case of emergency, it said.

South Korea, the world's fifth-largest oil importer, buys almost all of the crude it need from overseas and has been trying to secure its own energy sources abroad.

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