Korea Gas Corp. (036460.SE), or Kogas, on Sunday said it will receive its first batch of oil of about 400,000 barrels in late July as remuneration fees for the development of Iraqs Zubair oil field.
Kogas "together with its project partner Occidental, will receive a total 1 million barrels, which it plans to sell in the international market," the South Korean company said in a statement.
The Kogas comments came after a consortium, led by Eni SpA (ENI.MI, E), signed a technical-service contract early last year to redevelop the Zubair field. ENI has a 32.81% share of the consortium; other partners include Occidental Petroleum Corp. (OXY), with 23.44%, Kogas, with 18.75%, and Missan Oil Co. with 25%.
In December 2010, Eni, Occidental and Kogas disclosed they had achieved and sustained a 10% increase in oil production at the Zubair field, near Basra in southern Iraq.
The project in Zubair is expected to produce approximately 6.4 billion barrels over a 20-year period, according to Kogas.
source: APEC-VC Korea
