UAE vows to offer Korea crude oil first in crises: officials

ABU DHABI (Yonhap) -- With Korean Prime Minister Kim Hwang-sik visiting Abu Dhabi, the United Arab Emirates (UAE) on Tuesday offered to provide Korea with crude oil first in energy market crises, officials said.

Kim met with Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, to discuss issues with crude oil supply. According to officials who were present at the meeting, Kim sought the UAE's help if political instability in Middle East leads to problems with oil supply.

The crown prince said the UAE would always help South Korea, according to the officials. They said the crown prince highlighted the importance of having concrete discussions on South Korean needs and of making progress to execute necessary plans.

According to officials, Mohammed said the two countries should set up a dialogue channel to further discuss oil supply and that the UAE will give South Korea crude oil before other countries when necessary, given their bilateral relations.

Korea, which doesn't produce oil, is the world's fifth-largest crude oil importer. The fourth-largest economy in Asia consumed a total of 870 million barrels of oil in 2010.

On Tuesday in Seoul, South Korea agreed to cooperate with the U.S.-led sanctions on Iran for its nuclear program, after Washington asked Seoul to reduce its crude oil imports from the Middle East country. Iran is among the world's largest oil producers.

In March, South Korea signed its largest-ever oil field development deal, potentially valued at nearly US$100 billion, in the UAE.

During Tuesday's meeting, Kim also sought the UAE's cooperation in allowing South Korean firms to take part in UAE business projects. In response, the crown prince noted his close ties with President Lee Myung-bak and said the possibility for cooperation in all areas was quite high.

Officials said Mohammed felt South Korean firms operating in the Middle East could contribute to the UAE's development, which would then further strengthen the countries' relations.

The crown prince also called for discussions for "concrete progress in cooperation in a future-oriented direction," according to officials.

Kim is scheduled to return home on Wednesday, after meeting UAE Prime Minister Sheikh Mohammed bin Rashid Al Maktoum in Dubai.

Korea and the UAE have strengthened their ties in recent years. In late 2009, South Korea won a $20 billion contract to build four nuclear reactors in the UAE. Seoul officials have said the UAE, with abundance in cash and oil, considers South Korea, with high technologies and manpower, a major partner for its preparation for a post-oil era.

For Korea, the UAE can serve as a bridgehead for its inroads into the Middle East, officials have said.