FINANCIAL NEWS

South Korea, UAE to cooperate on energy exploration

03 Aug 2010

(MENAFN) State-run Korea National Oil Corp (KNOC) and Abu Dhabi National Oil Co (Adnoc) signed a preliminary agreement to cooperate on energy exploration and stockpiling of crude oil, strengthening ties after the Asian nation won a $20 billion contract to build nuclear plants in Abu Dhabi, Khaleej Times reported.

Both companies will form a team to study the possibility of exploring for oil and gas in Abu Dhabi and will discuss a plan for Abu Dhabi National to use storage facilities owned by KNOC.

KNOC is joining international oil companies such as Exxon Mobil Corp and Royal Dutch Shell Plc that have traditionally been present in the country, the fourth-largest crude producer in the Organisation of Petroleum Exporting Countries. South Korea and the UAE are expanding economic cooperation after state-controlled Korea Electric Power Corp beat General Electric Co and Areva SA to win the emirate?s first nuclear power plant contract in December.

Abu Dhabi, holder of most of the UAE?s hydrocarbon reserves, will be reviewing contracts for concessions held by foreign oil companies which are due for renewal within the next five years. It plans to boost oil output capacity to 3.5 million barrels a day, from about 2.8 million.
Crude oil storage

The Gulf nation is in talks with South Korea to use about 10 million barrels of crude-oil storage capacity, JoongAng Ilbo newspaper reported in May. The UAE exported 96 per cent of its oil to Asia and the Pacific last year, according to Opec?s Annual Statistical Bulletin.

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