RIYADH, 15 January 2003 — South Korea, where the Kingdom has a major investment in oil refining, has expressed concern over the supply of oil in the event of a US attack on Iraq.
Visiting Korean Minister of Trade, Industry and Energy Shin Kook-hwang raised the issue of oil supply and oil prices in the international market during his talks with Minister of Petroleum and Mineral Resources Ali Al-Naimi here yesterday.
“The two sides reviewed cooperation in the oil sector with special reference to the situation in the international market and the approach of the Organization of Petroleum Exporting Countries (OPEC) with regard to the proposal to increase oil output,” said a reliable source following the meeting here yesterday.
Seoul’s total oil imports in 1997 stood at $17 billion with 35 percent of this quantity supplied by the Kingdom alone.
In total, Aramco’s oil exports to Korea exceeds $7 billion annually. Aramco, which currently holds 35 percent shares in Korea’s Ssangyong Oil Refining Company, invested $400 million in this company in 1991.
Saudi Arabia’s total portfolio investment in Korea amounts to approximately $600 million.
The Korean minister lauded the efforts of the Kingdom, saying that due to Saudi leadership’s crucial role in stabilizing world oil market, oil price is expected to remain at a level acceptable for both oil producing and oil consuming nations.
