Local Firms Seek Projects in Iraq
By Kim Hyun-cheol
Staff Reporter
A Korean economic mission held a forum with its Iraqi counterpart Thursday in Baghdad to discuss ways of participating in post-war reconstruction projects.
Knowledge Economy Minister Choi Kyung-hwan and the 57-member government-private sector delegation discussed economic issues and joint projects in resource development and infrastructure construction in the war-torn country.
Delivering a keynote speech, Choi said he was confident that Korean companies can make a meaningful contribution to the resurrection and industrial development of the Middle East country.
Several new deals were made at the forum. STX Heavy Industries signed a memorandum of understanding (MOU) with the Iraqi Ministry of Industry and Minerals on the construction of a $3.2 billion petrochemical plant in the Basra region.
SK Energy also agreed with the Ministry of Oil to conduct a joint study prior to building a new plant in the Dora facility in Baghdad.
Korea Electric Power Corp. and Hyundai Heavy Industries also discussed with Iraq's Ministry of Electricity about the construction of a new 700-megawatt power station and an additional supply of portable electrical power generators.
Exports of those generators to Iraq are expected to reach $1 billion. Minister Choi and his Iraqi counterpart, Nouri al-Maliki, agreed to sign a pact on bilateral economic cooperation and form a body to carry out various joint businesses in the near future.
Choi also solicited more support from Baghdad on the ongoing projects under the oil-for-development agreement between the two countries, including the Korea Gas Corp.'s (KOGAS) latest Badrah and Zubair oil field projects in eastern Iraq.
South Korea and Iraq signed an MOU on a $3.6 billion deal during the visit of Iraqi President Jalal Talabani to Korea. The contract gave Korean firms the rights to develop oil reserves in southern Iraq, with them implementing social infrastructure in rehabilitation projects there in return.
Iraq has the world's third-richest reserves of oil, while South Korea, the world's fifth-largest oil importer, is seeking to gain resource production assets to ensure future energy supplies.