The South Korea connection
Oman's fleet of VLCC carriers will be built by Japan's Mitsui OSK Line (MOL) who will own 50% of the fleet, beginning, it is hoped by the end of 2006. MOL has an equity interest in six of the seven LNG carriers that are co-owned by Oman Shipping Company (OSC). These include Sohar LNG, Muscat LNG, Nizwa LNG, Ibri LNG, Salalah LNG and Ibra LNG.
This is Macki's second trip to South Korea this year. He was there in June for discussions and meetings regarding the carrier fleet and oil and gas investments and to sign a contract with Daewoo. His Highness Sayyid Fahd bin Mahmood al Said, Deputy Prime Minister for the Council of Ministers made an official visit during September 2005, during which he signed an agreement on double taxation and discussed other avenues of cooperation.
South Korea is Oman's third highest consumer of oil and gas. Khaleej Times, 9th July 2005. "In 2004, South Korea imported 41.9 million barrels of crude oil, which is 16 per cent of the total export of Oman crude oil and four per cent of the total crude oil imports of South Korea. South Korea also imports 4.06 million tons of LNG every year, which is 62 per cent of the total export of Oman LNG and 21 per cent of the total imports of LNG for South Korea." Times of Oman, 24th September 2005.
Oman Oil Company (OOC) acquired a 30 per cent share in LG Energy in November 2004, which was the first direct investment by an Omani company in South Korea. Apparently, the Omani government has given its full support to South Korea’s policy on North Korea and has contributed $50,000 in the year 1997 and 2000 each, to Korea Energy Development Organisation (KEDO), which is constructing the Light Water Nuclear Power Plant in North Korea.
Daewoo Ship building and Maritime Engineering Company won a 10 month contract worth RO2.15 million in June, to provide consultancy and engineering designs to build a dry dock port in the wilayat of Duqm in the Wusta region. Reports say that this could be the largest ship repair yard in the Middle and Far East. It would be capable of repairing the largest tankers and would be operated by Daewoo under the Daewoo name.
In July, Oman Oil Company (OOC), Oman Refinery Company (ORC) and LG International of Korea signed a shareholders agreement for the Sohar Aromatics Complex valued at $956 million. OOC owns 60 per cent of the project and the remaining percentage is equally divided between Oman Oil Refinery and LG. The project will start commercial operation during the third quarter of 2008. It will produce 800,000mtpa of paraxylene and 210,000mtpa of benzene using naphtha produced by the Sohar Refinery Company (SRC).
The South Korean Premier, Lee Hae-chan, visited Oman for 3 days at the end of November, for formal talks with His Highness Sayyid Fahd. His Majesty Sultan Qaboos bin Said gave an audience to Mr Hae-chan.
