KOREA, AZERBAIJAN SEAL ENERGY COOPERATION AGREEMENT
On 23 April, President Ilham Aliyev of Azerbaijan and President Roh Moo-hyun of Korea issued a joint declaration outlining their efforts to strengthen bilateral relations centering on cooperation in energy field.
The two sides also struck up ties in transportation and the IT sector.
“With the declaration, we are sure to be able to further solidify our cooperation,” President of Korea said in a joint press conference following the summit.
President Aliyev said he expects the two countries to contribute to each other based on their respective strengths.
The same day, the Ministry of Construction and Transportation said it has signed a memorandum of understanding to offer technology to help develop Azerbaijan’s railway and port infrastructure.
As reported, Seoul also plans to construct a new city from scratch in Azerbaijan. The famous Daewoo International Corp. agreed to export 1,000 buses worth $60 million to the area.
The summit with Aliyev marks the first visit for the Azerbaijan president to Korea since the two countries opened diplomatic relations in 1992.
Korea and Azerbaijan have been strengthening ties since President Roh Moo-hyun visited the oil-rich country in May last year. Bilateral relations improved through several rounds of economic talks that aimed to build on the energy deals Korea struck with Azerbaijan.
In return, Seoul has been busily lending its economic expertise to Azerbaijan, which seeks to duplicate Korea’s rapid industrial development.
“Azerbaijan is large in oil and gas resources while Korea has advanced technology. We can contribute to each others’ future development,” President Aliyev noted.
However, he added that Korea is a latecomer in the resource development market. “All major contracts have been signed,” the Azerbaijan President said. That includes a projected two billion barrel oil development project led by Azerbaijan’s state-run SOCAR in the Inam oil block in which a consortium of top Korean firms, including STX Corp. and GS Caltex Corp., had hoped to acquire a 20 percent stake.
Beginning next year, Azerbaijan expects to export up to 1 million barrels a day.
In return for the natural resources, Azerbaijan hopes to widen its access to Korea’s expertise in industrial and IT development.
As stated, during his stay, President of Azerbaijan plans to visit local business representatives and a number of Korean companies with plans to invest in the Eurasian republic. One of the tours will take the Azerbaijan President to Busan New Port and STX Corp.’s shipbuilding facilities. STX recently signed on to participate in a project to erect a 20 megawatt wind power plant in Azerbaijan.
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