GS Energy, KNOC secure 3% stake in UAE oil fields

A South Korean consortium sealed a landmark deal on Wednesday to secure a 3 percent stake in the Abu Dhabi Company for Onshore Oil Operations, which operates the biggest onshore oil fields in the United Arab Emirates.

The new deal grants the South Korean consortium ― comprised of GS Energy and the Korea National Oil Corp. ― developing rights to ADCO’s oil fields for 40 years, alongside other foreign companies including France's Total and Japan's Inpex.

Over the 40 year period, Korea is expected to acquire roughly 800 million barrels of crude, the largest for a single oil acquisition deal in the country.

The oil fields in Abu Dhabi currently produce 1.6 million barrels of Murban crude per day and output is expected reach 1.8 million barrels per day from 2017.

The consortium has also gained the right to directly sell its share of crude extracted from the fields, establishing a stable source of oil imports into Korea according to the KNOC.

Moreover, the KNOC said that GS Energy was able to win the bid as UAE successfully carried out the conditions of a bilateral agreement signed in 2011 to expand cooperation in the oil and gas sectors.

By Sohn Ji-young (jys@heraldcorp.com)