Iraq to Increase Oil Supplies to Asian Countries

Iraq intends to increase oil exports to Asian countries, including South Korea, spokesman for the Iraqi oil ministry Asym Jihad told Trend on Saturday.

“At this stage Iraq prefers Asian oil market. The country plans to increase supplies to South Korea,” Jihad said.

Earlier during the meeting between Iraqi foreign minister Hoshyar Zebari and South Korean foreign minister Kim Sung-hwan, the latter called Iraq to provide his country with constant oil supplies.

Earlier, S-Oil Corporation of South Korea and Saudi Aramco signed an agreement on supplies of Saudi oil to South Korea for 20 years.

The agreement was signed during the visit of the President of South Korea to Saudi Arabia. It helps to significantly reduce dependence of Seoul on Iranian oil supplies.

Qatar’s RasGas oil and gas company and South-Korean KOGAS company signed an agreement on liquefied gas supplies to South Korea for the term of 20 years last week.

From 2013, Qatar will supply South Korea with 2 million tons of liquefied gas per year. Gas will be shipped from the Qatar port of Ras Laffan.

Jihad said Iran understands that political situation in the regions significantly affected the world’s oil market, that’s why the country intends to increase oil exports.

Jihad also noted prices for the Iraqi oil are the most tolerable that’s why the country attracts more and more buyers.

As for cooperation with South Korea, Jihad said that Seoul is a permanent importer of Iraqi oil.

“We cooperate also in the field of hydrocarbon exploration in Iraq. Thus, the Korean company has Kogaz certificate for exploration of natural gas production in Akkaz field in Anbar province,” he said.

In addition, the Korean state-owned petroleum corporation is engaged in the oil exploration in eight fields, Mr Jihad noted.

According to BP, the proven oil reserves in Iraq at the beginning of 2011 amounted to 115 billion barrels, which ranks the country third in the world after Saudi Arabia and Iran.

Major oil fields of Iraq are Rumaila, Zubair, Nahr Umr, Maynun and West Qurna located in the south. About 80 percent of oil produced in the country is exported.

RigZone