South Korea’s DK Tech Corporation has signed a $789m contract with National Iranian Oil Company (NIOC) to supply equipment for onshore work on phases 17 and 18 of the South Pars gas field, the company said in a disclosure to the Korea Exchange on 17 December.
South Korea has followed the US in imposing fresh sanctions on firms working with the Iranian energy sector since September, blacklisting more than 100 companies, including the Seoul branch of Iran’s Bank Mellat.
As South Korea’s fourth-largest supplier of crude oil, Iran accounts for about 10 per cent of the country’s supply.
Daelim Industrial is currently the only South Korean engineering and construction firm working in the Islamic Republic, with two major schemes. The first, a $111m deal for liquefied natural gas (LNG) storage tanks projects at Tombak, on the Hormuzgan coast in the southwest, was awarded in 2007 and is expected to be completed by mid-2011.
The second contract, awarded in 2009, covers onshore gas treatment facilities at Phase 12 of the South Pars field, along with two Iranian engineering and construction firms, Kayson and Sazeh. The facilities are due for completion in 2013.
With both projects already under execution, the company has pressed ahead with construction, despite tougher US and UN sanctions imposed since July this year. The company says it has not pursued any further projects.