Korea to Produce Oil in UAE Until 2042
03 July, 2019
Korean companies have opened up an oil field in the UAE and senior officials from the two countries attended a ceremony in Abu Dhabi on Tuesday to celebrate the start of commercial oil production there.
The project was one of the Lee Myung-bak administration's much-vaunted overseas resources developments, which came under fire from both Lee's successors, Park Geun-hye and Moon Jae-in, for being a waste of time and money.
The Korea National Oil Corporation and GS Energy will produce a total of US$6.2 billion worth of crude oil at the Haliba oil field over the next 24 years.
It is the first time that Korean companies have succeeded in commercial development of an oil field from exploration to production. KNOC and GS Energy hold a 30 percent and 10 percent stake in the oil field, which has an estimated deposit of 230 million barrels.
Development began in March 2012.
The UAE had not permitted foreign companies to produce oil since 1979.
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