The Korea Herald

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Saudi oil minister agrees to try to help ensure stable crude supply to Korea

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Published : Feb. 8, 2012 - 02:17

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RIYADH  (Yonhap News) -- Saudi Arabia's oil minister agreed Tuesday to try to help ensure a stable supply of crude to South Korea, officials said, as Seoul prepares to cut back on imports from Iran in line with U.S. sanctions.

Petroleum and Mineral Resources Minister Ali al-Naimi made the commitment during a meeting with South Korean President Lee Myung-bak, the presidential office said. Lee arrived in the Saudi capital earlier in the day for a three-day visit.

The agreement is expected to help alleviate concerns in South Korea that a drastic cut in oil imports from Iran, which is accused of seeking illicit nuclear programs, could harm its slowing economy. South Korea relies on imports for all its oil needs and Iranian crude accounts for about 10 percent of the country's total oil imports.

"President Lee highly evaluated Saudi's efforts to stabilize oil prices and supply-demand as a leading OPEC member, and asked for support for a stable supply of crude oil to South Korea in case of contingency," the office said in a statement.

"Minister al-Naimi responded that he will actively consider support, such as providing additional supplies upon South Korea's request," the statement said.

Washington has been trying to drum up international support for its campaign to dry up Iran's oil export revenues as punishment and pressure over the country's alleged nuclear weapons programs. Iran claims its nuclear programs are for peaceful purposes.

Lee will later visit Qatar and the United Arab Emirates on similar missions.

South Korea gets about one third of its crude imports from Saudi Arabia. Together with Qatar and the UAE, the three countries account for about half of Seoul's total oil imports.

Officials have said they are optimistic about securing commitment from the three nations to increase their oil production to make up for the shortfall in South Korea's oil imports because the countries are also concerned about the prospect of a nuclear-armed Iran.

The visit to Riyadh will include talks with King Abdullah bin Abdul Aziz Wednesday about boosting cooperation in energy, construction, defense and health care areas, the presidential office said. A separate meeting with the Saudi defense minister is also planned.

During a meeting with South Korean residents in Saudi Arabia earlier, Lee said that his trip to the three Middle Eastern nations is part of his efforts to help Asia's fourth-largest economy overcome the global economic crisis.

"How South Korea will overcome the crisis is a big task for the government," Lee said. "At the time of the 2008 crisis when all other countries saw their economies contract, we surprised the world with growth ... If we overcome the global crisis in 2012 again, the status of our country will rise."

"I am determined to work harder than any other heads of state to overcome the crisis this year, including visiting the three Middle Eastern nations," he said.