Korea’s GS Energy Corporation looks to seal a deal with a state-owned UAE oil company that will see it pump oil from the country’s largest onshore deposit, according to media reports.
Abu Dhabi National Oil has been actively seeking foreign partnership on a four decade-long project to pump oil from the reserves, and it is thought that GS Energy will now join Japan’s Inpex and French venture Total as part of a project worth US$22 billion.
Although GS and Abu Dhabi National Oil have stopped short of confirming the news, reports are now circulating that a deal has already been agreed, following the earlier announcement that Total had paid US$1.1 billion for a 10 percent stake and that Ipex had finalized a deal which would see it take a 5 percent stake.
GS has also logged a bid for a 5 percent stake, and is thought to have offered to pay somewhere in the region of US$1.1 billion for pumping rights.
A formal agreement is expected later this week.
Earlier this year, Korean President Park Geun-hye spoke of strengthening the strategic partnership between Korea and the UAE. Companies from the two countries are currently cooperating over the building of smart city projects, power plants and medical care ventures.
By Oh hae-young
