Kim Jung-kwan, minister of trade, industry and energy [Yonhap]
Kim Jung-kwan, minister of trade, industry and energy [Yonhap]

South Korea and the United Arab Emirates have agreed to build a crude oil security cooperation framework capable of functioning stably even in crisis situations such as a Middle East war. The two sides also exchanged views on ways to cooperate on applying and expanding AI in the refining and petrochemical industries.

The Ministry of Trade, Industry and Energy said Minister Kim Jung-kwan met Wednesday morning in Seoul with UAE Minister of Industry and Advanced Technology Sultan Al Jaber, who also serves as chief executive of the Abu Dhabi National Oil Company (ADNOC), to discuss stabilizing critical resource supply chains and expanding industrial cooperation.

The two countries have deepened their strategic cooperation on critical resources including crude oil and naphtha through a series of high-level exchanges: President Lee Jae Myung's state visit to the UAE last November, a presidential special envoy for strategic economic cooperation in March, and Minister Kim's own visit to the UAE in June.

Al Jaber's visit to South Korea also provided an opportunity to review key cooperation initiatives the two sides have been pursuing and to exchange more concrete views on shared areas of interest, including AI and energy infrastructure.

In particular, the two ministers signed a "Ministry of Trade, Industry and Energy–ADNOC Strategic Cooperation Agreement" on crude oil supply chains, covering stable crude oil supply, emergency supply response measures and joint stockpiling.

Through the agreement, the two countries committed to building a crude oil security cooperation framework that can operate stably even in crisis situations such as a Middle East war. The pact was concluded after the United States and Iran signed a memorandum of understanding on ending hostilities on June 17, and is expected to further deepen bilateral energy and resource security cooperation going forward.

The two sides also discussed ways to cooperate on applying and expanding AI in the refining and petrochemical sectors, areas where both countries hold competitive strengths.

Minister Kim introduced South Korea's AI transformation project for the petrochemical industry under way at the Ulsan-Mipo Industrial Complex, along with examples of domestic refining and petrochemical companies leading the way in AI adoption.

He highlighted the similarities between ADNOC's current strategy for applying and expanding AI across all of its crude oil-related business operations and South Korea's Manufacturing AI Transformation (M.AX) policy, and proposed identifying concrete cooperation projects between companies and institutions of the two countries, the ministry said.

The meeting also covered a range of energy infrastructure projects the UAE is pursuing, including expanding crude oil and gas storage and transportation facilities that bypass the Strait of Hormuz.

"Korean companies are exploring various forms of participation in key UAE projects, including EPC contracts," Kim said, asking the UAE side to "show interest and provide support so that our companies can take part in related projects going forward."

He added that "although the Middle East situation is entering a phase of change, securing the stability of critical resource supply chains remains the most important task for our economic security, and we must further strengthen our strategic partnership with the UAE, a major energy supplier."

"We need to broaden the scope of cooperation by exploring diverse possibilities and opportunities in advanced industries such as AI, beyond the critical resource supply chains between the two countries," Kim said. "We will work closely with the UAE side to ensure that concrete outcomes are achieved following this meeting."


oskymoon@heraldcorp.com