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Mon 5 Mar 2012 11:00 AM

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S. Korea claims 40% stake in UAE oil fields

Consortium says it has finalised US$2bn stake in Abu Dhabi's ADNOC

S. Korea claims 40% stake in UAE oil fields
The 40 percent stake would require a total investment by the consortium of US$2bn

A South Korean consortium has finalised a deal with Abu Dhabi National Oil Co to hold a 40 percent stake in three onshore and offshore oil drilling areas in Abu Dhabi, which have a total investment value of US$5bn, the Korean government said on Monday.

The 40 percent stake would require a total investment by the consortium of US$2bn, a statement from the Ministry of Knowledge Economy said.

The statement said state-run Korea National Oil Corp would hold 34 percent and GS Energy would hold a 6 percent stake in the projects, with ADNOC owning the remaining 60 percent.

South Korea announced an initial agreement on the oil fields with a combined of 570 million barrels of "discovered petroleum initially in place," a year ago, saying the country had the right to import 100 percent of oil produced in the fields in the event of an emergency such as disruptions to the nation's oil supply.

Production is expected to begin in 2014, if the development starts later this month, and daily production could reach a maximum of 43,000bpd, it said.

GS Energy, fully owned by GS Holdings Corp, has a 50 percent stake in South Korea's second-largest crude oil refiner GS Caltex Corp, with U.S. Oil major Chevron Corp holding the other half.

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