September 07, 2008

Iraq threatens to stop oil exports to South Korea

The Associated Press reported that Iraq's oil ministry has recently threatened to stop all crude exports to South Korea if it with a deal signed with the semi autonomous Kurdistan regional government.

Mr Assem Jiham Iraqi oil ministry spokesman said that "The ministry has made it clear that no contracts should be signed until a new national oil law is passed. There was a clear warning to these companies that they will be blacklisted and excluded from any future cooperation with the ministry." He added that there would be no leniency shown to any company signs such contracts.

It is noted that in early November 2007, a consortium led by South Korean National Oil Corporation secured exploration rights from the Kurdish regional government for an oil field in the northern province. The Korean consortium includes SK Energy, South Koreas biggest oil refiner, and GS Holdings Corporation.

According to Korea National Oil Corporation, through November 2007 South Korea had imported 42 million barrels of oil from Iraq, nearly triple all its imports from Iraq in 2006.