S Korea to invest $2 billion to develop 3 UAE oil fields

March 05, 2012 | Asia, Economy, Licensing & Concessions

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Two South Korean companies secured rights Monday to hunt for crude oil in three undeveloped oil fields in the United Arab Emirates, offering the energy-hungry Asian nation greater access to Mideast oil.

The Korean investment is led by the state-run Korea National Oil Corporation, which will hold a 34 percent stake in the joint venture with the Abu Dhabi National Oil Company.  It is joined by Seoul –based GS Energy, which will control 6 percent.

ADNOC, which is owned by the Abu Dhabi government, will retain a majority stake in the fields.

The agreement is valid for 30 years. It covers exploration, development and oil production, according to a statement by Emirates state news agency WAM. Two of the fields are on land, and the other is off Abu Dhabi’s Gulf coast.

South Korea is the world’s sixth largest oil importer. The deal gives it access to reserves containing an estimated 570 million barrels of oil and is likely to require an investment of $2 billion, according to the South Korean Ministry of Knowledge Economy.