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ADNOC, KNOC sign deal to develop three oil fields

ABU DHABI -- Abu Dhabi National Oil Company (ADNOC) and Korea National Oil Corporation (KNOC) and GS Energy, have signed today a joint venture agreement to develop three undeveloped oil fields in the Abu Dhabi Emirate.

The agreement which was signed on the basis of sharing participation in ADNOC’s concession provides for the joint operation and investment of the undeveloped oil fields.

The agreement was signed by Abdulla Nasser Al Suwaidi, ADNOC Director General and for the Korean side by Young-won Kang President and CEO, Korea National Oil Corporation and Dong-soo Hur, Chairman and CEO, GS Caltex Corporation here at ADNOC Head Office.

The ceremony was attended by Jauan Salem Al Dhaheri, Supreme Petroleum Council (SPC) Secretary General, Sukwoo Hong S. Korean Minster of Knowledge Economy and Seungjun Kwak Director General, Presidential Council for Future and Vision and Taekyun Kwon Ambassador of the Republic of S. Korea to UAE.

According to the agreement ADNOC will retain a 60% participation in the project and the Korean consortium will have 40% participation (KNOC 34%, GS Energy 6%)

The agreement involves development of three undeveloped oilfields secured based on the Head of Terms signed between the two parties in March, 2011. The fields contain two onshore fields and one offshore oilfield which are expected to start production within several years.

The agreement which will be valid for 30 years provides for exploration, development and production activities for the oilfields with economic oil quantity initially in place.

It is to be noted that the Government of Abu Dhabi and the Republic of South Korea have signed on March 2011 a wide range Memorandum of Understanding of joint cooperation on oil and gas sector and future growth engines.