Tuesday 15 March 2011

UAE oil deal — boon or much ado about nothing

The Korean government was supposed to announce with great fanfare a mega-sized agreement with the United Arab Emirates (UAE) securing stakes in reserves of more than 1 billion barrels of oil.

The strong earthquakes and the resultant tsunami in nearby Japan late last week had Seoul play it down. But bureaucrats here can barely contain their delight in disclosing the deal with an estimated value of $100 billion.

The memorandum of understanding (MOU) signed Sunday by state-run Korea National Oil Corp. (KNOC) and its counterpart Abu Dhabi National Oil will have both parties participate in oil field development beginning in 2014.

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