Tehran, Seoul ink gas deal

December 9, 2010

TEHRAN -- Iran and a South Korean company have recently signed a $750-million contract for carrying out a project in giant South Pars gas field.

It is estimated that the Korean company will take the leading role in development plan of South Pars gas field’s phases 17 and 18, the Mehr News Agency reported.
National Iranian Oil Company (NIOC) in July terminated its gas deal contract with South Korea’s GS Engineering & Construction (GS E&C) following the Korean firm’s failure to fulfill its obligation. 
GS E&C won a 1.6 trillion won ($1.37 billion) project in October 2009 to sweeten gas from the South Pars field in Iran, increasing its presence in the gas-rich country.
According to GS E&C, the company and a consortium including Iranian International General Contractor Co. had agreed to complete phases 6, 7 and 8 of South Pars gas project with Pars Oil and Gas Co., a subsidiary of National Iranian Oil Company, by May 2013.
The Korean firm did not fulfill its obligations 10 months after signing the contract, which made the Iranian counterpart to call off the deal