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S. Korea, Saudi Arabia vow energy cooperation amid OPEC Plus' production cut

All News 17:30 November 02, 2022

SEOUL, Nov. 2 (Yonhap) -- South Korea and Saudi Arabia agreed Wednesday to boost cooperation to ensure stable oil supplies, Seoul's industry ministry said, as concerns have grown over the Organization of the Petroleum Exporting Countries (OPEC) Plus's decision to cut oil production.

The consensus was reached during a teleconference between South Korean Industry Minister Lee Chang-yang and Saudi Energy Minister Abdulaziz bin Salman, according to the Ministry of Trade, Industry and Energy.

The meeting came as OPEC Plus agreed last month to cut oil production by 2 million barrels per day from November.

"During the meeting, the two sides stressed the need for cooperation between oil suppliers and importing nations to stabilize the oil market. They also made sure that they are credible trading partners and agreed to continue close work in energy to ensure stable supply chains," the ministry said in a release.

During the first seven months of this year, South Korea bought 186 million barrels of crude oil from Saudi Arabia, which accounted for 31.1 percent of Seoul's total oil imports, or the largest share. Last year, the proportion came to 29.3 percent, according to government data.

South Korea depends on imports for most of its energy needs.

During the meeting, Lee voiced hope for South Korea's participation in the kingdom's Global Supply Chain Resilience Initiative that includes extensive investment incentives, according to the ministry.

The two ministers agreed to boost bilateral cooperation in hydrogen and related industry sectors, as well as the petrochemical and plant construction fields, the ministry said.

This AFP file photo shows Saudi Aramco's Abqaiq oil processing plant on Sept. 20, 2019. (PHOTO NOT FOR SALE) (Yonhap)

This AFP file photo shows Saudi Aramco's Abqaiq oil processing plant on Sept. 20, 2019. (PHOTO NOT FOR SALE) (Yonhap)


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