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South Korean GS returns to South Pars gas projects

25 May 2016 18:11 (UTC+04:00)
South Korean GS returns to South Pars gas projects

By Fatma Babayeva

South Korean oil and gas company GS seeks to ink a new deal to return to South Pars gas projects after it had cancelled a former agreement with National Iranian Oil Company (NIOC).

The company, which in 2010, inked a deal worth $ 1.2bn with NIOC for the gas sweetening facility in 6-8 phases of South Pars field and canceled it after a while - is at the negotiation table to sign two lucrative deals with the NIOC in South Pars again, reported Iranian Mehr news agency on May 24.

Hamidreza Jalali, the head of Industrial Projects Management of Iran (IPMI) told that the deal had been signed with GS in management, operation, and financing of the projects.

Once finalized, the deal will give GS legible to work in South Pars 14th phase, he said by adding that GS will finance the sweetening project to operate the unit by March 2017.

Five phases of the South Pars field are expected to become operational during the current year.

Recently, South Korean President Park Geun-hye paid his first official visit to Tehran. During three day visit, he headed a large business delegation of over 230 executives, and officials of the two countries signed 19 memorandums of understanding.

Overall cost of the contracts signed between the two countries is expected to amount from $13 to $17 billion.

The two countries plan to cooperate in various fields including oil, gas and petrochemical, energy, transport, technology, insurance and banking, construction, health system, as well as, custom, legal and cultural issues.

Overall, trade turnover between Iran and South Korea stood at $6.1 billion in 2015 while the figure was $17.4 in 2011 before sanctions were imposed against Iran by the Western countries.

In addition, Iran and South Korea plan to increase bilateral trade from current $6 billon per year to $18 billion.

Iran and South Korea intend to upgrade the mutual trade ties to strategic economic relations in future.

South Korean firms will invest in Iran and their activities in the Islamic Republic will be accompanied with transfer of technology into the country.

Under the newly signed documents, the South Korean entrepreneurs will work in Iran's energy, mining and infrastructure sectors.

Moreover, South Korean energy giant KOGAS signed 3 deals with National Iranian Oil Company to explore development opportunities in the gas fields of the Persian Gulf.

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Fatma Babayeva is AzerNews’ staff journalist, follow her on Twitter: @Fatma_Babayeva

Follow us on Twitter @AzerNewsAz

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