Korea National Oil Corp. has signed an oil deal with Abu Dhabi National Oil Company (ADNOC) for stakeholding in recoverable reserves of at least 1 billion barrels of oil.
The deal, which was called “unprecedented” by South Korea, is worth US$97.68 billion based upon current oil prices, the South Korean presidential office said in a statement.
Reuters reported that the full details of the deal are still to be worked out and it will be concluded next year.
According to The Korea Herald, under the deal, South Korea will have exclusive rights to develop three untouched and and as yet un-named oil fields in Abu Dhabi.
Separately state-run KNOC signed a contract with ADNOC to develop three onshore and offshore drilling areas in Abu Dhabi holding a combined amount of 570 million barrels of “discovered petroleum initially in place”, the statement said.
South Korea is the world’s fifth-largest crude oil importer relying on the commodity for all of its oil needs. It consumed over 2 million bpd in 2009 making it the tenth-largest oil consumer in the world.
According to the news agency, these two deals would help bring the oil self-sufficiency rate of South Korea to 15% from last year’s 10%.
The Reuters report added that South Korea and Abu Dhabi through another MoU agreed to store 6 million barrels of Abu Dhabi crude oil in South Korea’s storage facilities for free for strategic co-stockpiling. Under this agreement South Korea will be allowed to use the stored crude in an emergency.
