SEOUL, (Reuters) – South Korea’s KOGAS said on Thursday it would invest $1.05 billion in an Iraq oil project its consortium won a right to develop.
The consortium, which is led by Russia’s Gazprom and also includes Malaysia’s Petronas and Turkey’s TPAO, will invest a total of $3.52 billion to pump 170,000 barrels of oil per day from the Badrah oilfield in eastern Iraq, KOGAS said in a statement.
The deal will allow KOGAS to secure 1 million barrels of oil a year.
South Korea, the world’s fifth-largest oil importer, is seeking to own resource production assets to ensure a secure energy supply, instead of having to buy them on volatile international markets.
The investment follows an announcement last week that KOGAS will invest $6.5 billion in the development of the Zubair oilfield in Iraq and is a part of a national drive to invest a record $12 billion in overseas energy and resources assets this year.