The Abu Dhabi National Oil Company (Adnoc) and the Korea National Oil Corporation (KNOC) have signed a contract to develop three undeveloped oil blocks in Abu Dhabi.

This contract further strengthens the important relationship between both governments following last year’s memorandum of understanding for co-operation in the oil and gas sector, a statement said.

Under the contract, Korea will take a 40 per cent interest in the fields (KNOC 34 per cent, GS Energy 6 per cent), with the remainder being held by Adnoc.

The contract covers three undeveloped oil blocks, two onshore and one offshore, which have high exploration potential. The combined oil initially in place for the blocks stands at 570 million barrels. The area covered by the blocks is 11,560 sq km, one tenth of the Abu Dhabi area.

Development work will commence immediately with production expected to begin in the coming years.

Hong Suk Woo, Korea’s Minister of the Department of Knowledge Economy, said: “Korea and UAE are already working closely on projects of joint strategic importance, and today’s developments see the further strengthening of that friendship through an important, and truly mutually beneficial, energy partnership between our two countries.

“The contract between the governments of Korea and UAE are in three highly prospective areas and will allow Korea to secure up to an additional 570 million barrels of discovered petroleum initially in place,” he added. – TradeArabia News Service