South Korean energy developers said Thursday they are moving to secure development rights to four oil fields in northern Iraq that may hold enough crude to supply the country for up to two years.
The deal that is to be signed later in the day between a local consortium led by state-run Korea National Oil Corp. (KNOC) and visiting officials from Iraq's autonomous region of Kurdistan could allow local energy companies to gain access to 1-2 billion barrels of untapped crude oil.
The memorandum of understanding calls for the consortium to develop oil while helping build up basic infrastructure that can ensure continued growth of the largely underdeveloped region.
"Details of how oil will be divided between South Korean companies and the local government will be decided at a later date," a KNOC official said.
The state-run oil company also said it plans to set up a local office to start development of the Bazian oil field that is estimated to hold around 500 million barrels of crude. The KNOC
has already signed a contract for development of the field.