Iraq may give S. Korea special oil terms

DUBAI, United Arab Emirates, Sept. 12 (UPI) -- Iraq may offer South Korea enhanced terms for developing an oil field because of Korea’s work in reconstruction.

The Korea Information Service reports the possible favorable terms for the Halfaya field near Amara, Iraq, were discussed during a meeting in Dubai between Oil Minister Hussain al-Shahristani and Kim Young-joo, South Korea’s minister of commerce, industry and energy.

Shahristani was in Dubai attending an Iraq oil conference.

Halfaya has an estimated 3.8 billion barrels of oil reserves, and Iraq wants it to produce 200,000 barrels per day.

Shahristani said South Korea may draw down the bidding qualifications for the field because of the support South Korea has given to Iraq oil and reconstruction development efforts.

The Korea National Oil Corp. had signed a contract in 1997 for the field. There were a handful of contracts signed by Saddam Hussein. Shahristani has said that those the government recognizes as still valid will be renegotiated under terms set by a proposed federal oil law.