IOOC, Samsung Discuss Oil Equipment Production

IOOC, Samsung Discuss Oil Equipment ProductionIOOC, Samsung Discuss Oil Equipment Production

South Korea's Samsung Group is in talks with Iranian Offshore Oil Company on building oil equipment and installations, the latest move by a Korean firm to cement a place in Iran's emerging market in the post-sanctions period.

The prospect of cooperation was discussed during a meeting between IOOC officials and a group of representatives from the South Korean conglomerate company in Tehran on Monday, Shana reported.

IOOC Managing Director Saeed Hafezi said Samsung is keen to carry out new projects in Iran under two types of contracts: EPC–engineering, procurement and construction—and EPCF, or engineering, procurement, construction and financing.

The Seoul-based group was previously involved in building Khalij-e-Fars floating oil storage unit with a capacity to store 2.2 million barrels of oil. The FSU is reportedly the biggest oil exporting terminal of its kind.

On whether Samsung would cooperate in developing Iran's oil and gas fields under the country's new oil contracts, he said, "Samsung is different from the likes of Shell or Total. The group will not contribute to developing (oil and gas) fields in Iran."

However, Hafezi hoped to take advantage of Samsung's potential in manufacturing equipment, once the new contracts are settled.

Reza Bayazi, deputy for joint fields at IOOC, said Samsung has expressed interest to attend conferences in Tehran and London in which the new Iran Petroleum Contract will be unveiled.

Iran will lift the curtain on the framework of its multibillion-dollar oil contracts primarily in a conference in Tehran on November 28-20 and later in a seminar in the British capital on February 22-24.

Samsung’s primary focus is in the electronics, heavy industry, construction and defense industries. Other major subsidiaries focus on insurance, advertising and game businesses.

It is one of the largest businesses in Korea, producing nearly one-fifth of the country’s total exports. It was the world's biggest mobile phone manufacturer in 2012.