South Korean group signs $2 bln oil deal with UAE

AFP News5 March 2012
South Korea, the world's fifth-largest oil importer, buys almost all of the crude it need from overseas
This file photo shows company's signage at head office of the Korea National Oil Corp (KNOC) in Anyang. The energy group is to invest $2 billion as part of a project to develop three oil fields in the United Arab Emirates, according to officials

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 percent 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.