Korea will pursue five energy and infrastructure development projects in Venezuela worth $11.1 billion that could open new business opportunities for local companies in the South American country, the government said Wednesday.

The Ministry of Knowledge Economy said it signed four memorandums of understanding (MOUs) and one letter of intent (LOI) with Venezuela's energy and oil ministry in Seoul.

The deals cover the building of pipelines, storage and harbor facilities for oil, a petroleum coke power generation plant and an oil refinery project as well as the building of a petrochemical facility.

The MOUs and LOI call for work to be carried out between Korean companies and state-run oil operator Petroleo de Venezuela S.A. and Petroquimica de Venezuela S.A., a leading petrochemical company. Local companies to be engaged in the works are Daewoo Engineering & Construction Co., STX Construction Co., Hyundai Engineering & Construction Co. and SK Engineering & Construction Co.

Venezuela is estimated to have the second largest crude oil reserves in the world and has large reserves of natural gas and coal.

The ministry in charge of the country's industrial and energy policies also said Seoul and Caracas have reached a framework agreement to permit Korean companies to take part in a $10.4 billion liquefied natural gas project. (Yonhap)