Azerbaijan-South Korea Summit - UPDATED

23:55

A joint declaration on principles of cooperation between Azerbaijan and South Korea was signed in the Azerbaijanian capital on Thursday on the results of talks of the two countries' leaders Ilkham Aliyev and Roh Moo-hyun. According to them, this document envisages perspectives for and priorities of cooperation of the two countries.

"The Azerbaijanian-South Korean talks were positive. The sides discussed many issues connected with development of bilateral political, economic and cultural ties," Aliyev said at a briefing. According to his estimate, "there is a reliable contractual and legal base in Baku for developing mutually advantageous contacts, our ties are strengthening." He considers the opening of the embassy of South Korea in Baku to be important for the two countries' cooperation.

According to Itar-Tass, Aliyev pointed to the importance of South Korea's experience for economic development of Azerbaijan. "Our countries have economic prerequisites, the political will for cooperation, and we'll develop it," the president of Azerbaijan said.

In his turn, the president of South Korea believes that "there is a great potential" for developing economic ties between the two countries. According to Roh Moo-hyun, during talks the sides also considered issues of cooperation in the transport sphere, in the field of information technologies, energy and the participation of the Korean business in Azerbaijan's infrastructural projects, including in the construction of air and sea ports.

The South Korean president stressed that after the signing of these documents relations between the two countries "will acquire specific forms."

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13:03

President Roh Moo-hyun today signed contracts with Azerbaijan to pave the way for a sizeable stake in a state-run oil development plan.

According to The Korea Herald, Seoul will negotiate for up to 400 million barrels of crude oil in Inam, an oil field in the Caspian Sea, by acquiring 20 percent from the stake held by government-controlled oil company SOCAR.

The results will be announced in September following feasibility studies and further discussion, the Commerce Ministry said.

A successful deal would add the Republic of Azerbaijan to the list of Korea's offshore explorations which includes Nigeria, Russia and Kazakhstan.

BP and Shell, respectively based in the United Kingdom and the United States, together control a 50 percent stake in the oil mine. Seoul hopes for access to the remainder held by SOCAR to secure half the 850 million barrels Korea annually imports.

Drilling is scheduled to start this October with a 10 to 15 percent chance of hitting oil.

The Commerce Ministry said the development costs could reach up to $20 per barrel. The total supply in Inam is expected to be around 2 billion barrels.

With Roh's visit, Korea became eligible for exclusive negotiations with SOCAR.

During a summit with president Ilham Aliyev, Seoul signed a total of eight memoranda of understanding in the areas of energy, IT, construction, oil development, business investment among others.

Seoul pledged to construct the much-needed social infrastructure in the communist-turned nation. It will also lend support to help gain international endorsement, such as by obtaining membership to global organizations.

In addition, the two sides inked cultural and aerospace treaties.

Presidential aide for security affairs Song Min-soon conceded that Korea is a latecomer in the regional oil development schemes.

Japan has reportedly invested $3 billion so far.

"It's better late than never, but we really must make haste not to lag too far behind in investing in the Caucasus region," said Song.

Up to 7 billion barrels of oil is embedded in Azerbaijan, along with possible supplies of natural gas.

Azerbaijan borders on the Caspian Sea, the oil-rich region bridging Europe and Asia.

The president arrived amid a flurry of festivities celebrating the birthday of the deceased former president Heydar Aliyev.

After the summit, Roh met over lunch with some 260 South Korean and Azerbaijani business leaders.

Roh expressed hope that the joint petroleum project in the Inam oil field in the Caspian Sea will be a success, stressing the potential of economic cooperation between the two countries.

He also visited the Sangachal Oil Terminal on the Caspian shore near Baku with Cabinet ministers before attending a state dinner hosted by the Azerbaijani president.

Seoul initiated diplomatic relations with Baku in 1992.

In March this year, the Korean Embassy opened here and officials expect an Azerbaijan embassy to soon open in Seoul.

Two-way trade is still thin but its energy potential serves as a magnet for energy-poor Korea.

The Azerbaijan press, meanwhile, raised concerns about the dormant multiparty talks surrounding the North Korean nuclear program.

Roh said the six-party talks were instrumental for easing the standoff, stressing that Korea will lay the highest priority on denuclearizing North Korea.

/www.koreaherald.co.kr/