Korea to participate in Iraqi oil, gas bid

29 Apr 2011

(MENAFN) South Korea’s economy ministry said that the country would participate in an Iraqi oil and gas bid, that allows international firms to compete for twelve new exploration blocs, reported Arab News.

The ministry added that in case an agreement was signed, South Korea, Asia’s fourth-largest economy and the world’s fifth-largest crude oil importer, would aid Iraq in restoring infrastructure in return for crude oil or stakes in the facilities.

It also said that South Korea would receive a crude supply that equals ten percent of the country’s total 2.4 million bpd oil imports. Or if it requested, it would take eight percent of its combined 3.15 million bpd oil and gas imports. In addition, if a sudden geopolitical or other issue in other oil exporter led it to stop supplying oil, South Korea can ask Iraq for additional oil supplies.

It is worth noting that Iraq owns the world’s fourth-largest oil reserves and burns around 700 million cubic feet of gas every day at its southern oilfields. It needs to exploit energy to generate electricity and end constant power blackouts.

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