LOC17:38
14:38 GMT
TOKYO, April 14 (KUNA) -- Iraq has qualified a South Korean consortium to
take part in future oil and gas production projects within its borders, but
banned other companies seeking to tap resources in Kurdistan, South Korean
media reported Monday.
The consortium, consisting of state-run Korea Gas Corp. (KOGAS), LG Corp.
and Daewoo International, has passed the so-called prequalification review
process set by the Iraqi government, the officials at the Ministry of
Knowledge Economy told Yonhap News Agency. Of the 120 total applicants, only
35 companies and consortia were accepted, including Chevron Corp., Exxon Mobil
Corp., Royal Dutch Shell PLC and China National Petroleum, the report said.
However, the state-run Korea National Oil Corp. (KNOC) and SK Corp. were
left out in accordance with Baghdad's current stance not allow independent
development of oil and gas in the northern autonomous region without prior
consent from the central government, it said. KNOC and SK said earlier in the
year that they have secured development rights to four oil fields in northern
Iraq that may hold 1-2 billion barrels of untapped crude, which is enough to
supply South Korea with oil for up to two years.
The review only applies to oil and gas fields in advanced stages of
development and in production, and not to those that require exploration, the
report said, adding that if Baghdad and Kurdistan authorities in Irbil resolve
their differences, further opportunities for local companies may grow. South
Korea, with its heavy industrial base, is the fifth-largest oil importer and
seventh-largest consuming nation in the world. (end)
mk.bz.
KUNA 141738 Apr 08NNNN