Seoul seeks to export nuclear reactors

Korea is seeking to export nuclear reactors developed by local companies through a joint venture with a leading British engineering firm, the government said yesterday.

The joint venture between the state-run Korea Electric Power Corp., Korea Gas Corp., Korea Development Bank and Britain`s AMEC engineering group will pave the way for the Korean firms to win overseas power plant projects, the Ministry of Knowledge Economy said. They will also be able to develop oil and gas deposits.

The companies will set up a $30 million venture in Korea in October this year and start operating plant-building and energy exploration businesses.

The deal was signed by the heads of the four companies in London. President Lee Myung-bak and Britain`s Prime Minister Gordon Brown attended the signing ceremony. President Lee is currently participating in the G20 summit in the British capital.

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Under the agreement, AMEC holds a majority 54 percent stake with KEPCO, KOGAS and KDB holding 19 percent, 15 percent, and 12 percent, respectively.

"The joint venture will help the nation to get access to Asian, Middle Eastern and European countries that are looking to build new reactors," a ministry official said.

"The partnership will help the country expand its presence in the thermal power plant market," he added.

South Korea is one of the world`s leading countries in the operation of nuclear power units which generate electricity. Since 1977, the country has rapidly acquired technology and knowhow to design, build and operate nuclear reactors.

The country currently has 20 reactors and ranks sixth in the world after the United States, France, Japan, Russia and Germany.

However, the country had problems with winning overseas orders of reactors due to the lack of experience in the global business area and in building business networks on a global stage, officials added.

Asia`s third- largest oil importer plans to increase its overseas oil and natural gas output by 30 percent this year by taking advantage of lower energy prices to acquire petroleum assets. The joint venture will open doors for the country to secure energy resources abroad as well as develop renewable energy in the future, the ministry said.

AMEC is a global leader in engineering services and project management, and specializes in the development of oil, gas, mineral resources and power plant construction. The company has partnerships with Exxon Mobil, Shell, Chevron, Aramco and Petro China.

The sales of the British firm totaled 5.5 trillion won in 2007. The company has been expanding business in Korea by participating in the building of the Incheon Bridge, gas wells in the East Sea and a low and intermediate level waste repository in Gyeongju.

By Cho Chung-un



(christory@heraldm.com)