By Byun Duk-kun
A South Korean energy developer has obtained approval from Jordan to negotiate a deal for the development of a massive oil field in the western part of the Middle Eastern country.
The Jordanian Cabinet approved a memorandum of understanding (MOU) on negotiations for a final agreement on Tuesday to explore the field with an estimated reserve of more than 1.1 billion barrels, said Park Cheong-sig, president and CEO of Korea Global Energy Corp. (KGEC) on Wednesday. A signing ceremony will soon be held.
Under the MOU, both sides will have up to four months to conclude their negotiations for a production sharing agreement (PSA), which will entitle the South Korean company to 32.7 percent of total output from the oil field.
“Negotiations for the PSA will likely be concluded at an early date as most details for the agreement have already been discussed during our negotiations for the MOU,” Park told Yonhap News Agency.