South Korean consortia find strategic stronghold in Yemen
Posted: 09 January 2006
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Four South Korean consortia composed of state-run Korea National Oil Corp (KNOC), Samsung Corp, Daesung Industries Co and GS Holdings Corp signed an agreement with Yemen's Ministry of Oil and Minerals to obtain a controlling stake in a joint venture to explore an oil field off Yemen.
Under the agreement, the four members are to hold a 95 per cent stake in the oil block off South-eastern Yemen.
The offshore oil field is estimated to hold 950m barrels of crude oil, KNOC said.
KNOC said it considers Yemen, which is unaffected by a possible blockage of the Hormuz Straits, as a strategic stronghold of oil supplies because of its geographical location.
The Hormuz Straits is a crucial shipping route through which all vessels, including petroleum carriers, must pass to and from the Persian Gulf. Yet Iran, which controls the straits, has previously threatened to block the route.
The oil-producing nations of Iran, Iraq, Saudi Arabia and the United Arab Emirates are accessible via the Hormuz Straits, a narrow stretch of ocean between the Gulf of Oman in the southeast and the Persian Gulf in the southwest.
Posted by Editor Pipeline Magazine
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