South Korea and the United Arab Emirates (UAE) discussed strengthening energy cooperation amid global supply chain uncertainties. The talks covered crude oil supplies, joint oil reserves, alternative shipping routes, and nuclear power generation projects.
Based on a Yonhap report quoted Tuesday, June 16, South Korean Minister of Industry Kim Jung-kwan met with Musabbeh Al Kaabi, CEO of Abu Dhabi National Oil Company's upstream sector. The upstream sector is the part of the oil and gas industry that takes care of exploration and production.
The two discussed efforts to keep crude oil supplies stable. According to the South Korean Ministry of Trade, Industry, and Resources, the import of 24 million barrels of crude oil from the UAE agreed in March is going smoothly.
Both parties also discussed broader energy cooperation. One of them is the plan to build a new supply line that does not pass through the Strait of Hormuz through a large-scale infrastructure project.
The Strait of Hormuz is an important route for the world's oil shipments. Therefore, disruptions in the region can affect shipping costs, raw material supplies, and energy prices.
Kim also asked for UAE support for South Korean companies who want to participate in energy projects in the Gulf country.
In addition to oil, nuclear cooperation was also discussed. Kim met with Sharif Salim Al Olama, Deputy Minister for Energy Affairs at the UAE Ministry of Energy. The two discussed opportunities for joint nuclear energy projects in a third country, namely other countries outside South Korea and the UAE.
"Amid geopolitical uncertainties in the Middle East, the UAE has become a key partner supporting South Korea's resource and energy supply chains," Kim said in a statement, as quoted by Yonhap.
Kim said South Korea's crude oil supply relationship with the UAE is no longer limited to trade. According to Kim, the relationship has become a strategic partnership that continues even during crises.
Kim's visit to the UAE is part of a tour of three Middle Eastern countries. In addition to the UAE, he also visited Saudi Arabia and Qatar. Seoul is seeking to expand partnerships in the region amid energy supply disruptions.
This step is important for South Korea. The country with the fourth largest economy in Asia is heavily dependent on imports to meet its energy needs.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
