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South Korean builders to join in Kurdistan
reconstruction
14.2.2008
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February 14, 2008
SEOUL, -- Korean construction firms will
participate in a US$10 billion reconstruction
project of social overhead capital facilities in the
Kurdistan region of Iraq.
The Korea National Oil Corp. and SK Energy, involved
in oil development in Iraqi Kurdistan region, on
Wednesday announced that Korean builders including
Ssangyong Engineering & Construction and Kukdong
Construction will form a consortium to participate
in the reconstruction of Kurdistan. |
South Korea's SK Energy |
Currently on a visit to Seoul, Kurdistan Regional
Government Prime Minister Nechirvan Barzani is
expected to announce a detailed program for oil
exploration and reconstruction in his region after
meeting with president-elect Lee Myung-bak on
Thursday.
A KNOC official said, "Korean builders will form a
consortium under the initiative of Ssangyong
Engineering & Construction to participate in a $10
billion reconstruction project to build roads,www.ekurd.net
power plants and houses.
We're considering receiving crude oil, which KNOC
and other Korean refineries will handle, as payment
for the reconstruction."
The memorandum of understanding calls for the
consortium to develop oil while helping build up
basic infrastructure that can ensure continued
growth of the largely underdeveloped region.
"Details of how oil will be divided between South
Korean companies and the local government will be
decided at a later date," a KNOC official said.
The state-run oil company also said it plans to set
up a local office to start development of the Bazian
oil field that is estimated to hold around 500
million barrels of crude. The KNOC
has already signed a contract for development of the
field.
In November last year, KNOC, SK Energy, Daesung
Corp., Samchully and GS Holdings formed a consortium
and signed a contract with the Kurdistan Regional
Government to explore an oil reserve of at least 500
million barrels.
The Iraqi government has
suspended crude
oil exports to SK Energy, a member of the
consortium, stressing that the central government
should be the party directly concerned in all
contracts on oil development in Iraq. Now with oil
development in full swing in Iraq,www.ekurd.net
diplomatic friction is
likely to arise with Baghdad.
Information for this report was provided by chosun
com | koreatimes co.kr
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