Thursday, February 25, 2010
Korea, Iraq seek broader business cooperation
A group of Korean officials and business executives met their counterparts in Iraq on Thursday to discuss ways to expand economic cooperation between the two countries, Seoul officials said yesterday.
The 57-member Korean delegation, led by Knowledge Economy Minister Choi Kyung-hwan, attended the first forum on strengthening ties between Korea and Iraq on economic and energy sectors in Baghdad.
This is the first official visit by a group of Korean government officials and business leaders to the war-torn country of Iraq, officials said.
Choi requested the Iraqi government to help Korean companies participate in oil and gas development projects in central and southern regions, they added.
"I am sure that Korean companies could make meaningful contributions in the industrial development of Iraq," Choi said in an opening speech.
The list of delegates includes Lee Hee-beom, chairman of STX, Kang Young-won, president of the Korean National Oil Corp., Choo Kang-soo, of the Korea Gas Corporation, Byun Joon-yeon, vice president of Korea Electric Power Corp, Shin Kyu-sang, president of Doosan Heavy Industries and Yoo Jung-joo, president of SK Energy.
Prime Minister Nuri Kamal al-Maliki, Oil Minister Hussein al-Shahristani and other high-ranking officials greeted the Korean officials, the Knowledge Economy Ministry said.
"The visit by the Korean delegate will help the country's energy developers win deals to explore and develop oil and gas fields in the Middle Eastern country," an official at the ministry said.
"In return, Korea could also support Iraq to build infrastructure and reconstruction of the country and develop its oil and petrochemical industries," he added.
The forum has given some Korean companies the chance to seek business opportunities in Iraq.
STX Heavy Industries signed a memorandum of understanding with the Industry and Mineral Ministry of Iraq to build a petrochemical processing plant worth $3.2 billion in Basra, in the southern part of the country. SK Energy and the Ministry of Oil have decided to conduct a joint study on building a new oil refinery plant in the Baghdad suburb of Dora.
Korea's Land Ministry also discussed with its counterpart in establishing a master plan for the development of a new city, as well as infrastructure building in Iraq.
The event in Baghdad follows a deal reached by the two countries last year.
In March, President Lee Myung-bak and his Iraqi counterpart Jalal Talabani signed a $3.55 billion memorandum of understanding for social overhead capital projects in Basra.
Iraq holds the world's third largest oil reserves estimated at 115 billion barrels of crude. It produces up to 2.5 million barrels per day from its 24 fields. The country is ardently seeking foreign investment in its projects to develop about 20 new oil and gas reserves to rebuild the economy devastated by the U.S.-led war in 2003. Korea National Oil Corp., Korea Gas Corp., SK Energy and other Korean firms are bidding for the projects.
http://www.koreaherald.co.kr/NEWKHSITE/data/html_dir/2010/02/26/201002260056.asp
