South Korea and the United Arab Emirates (UAE) are enhancing strategic cooperation to stabilize their oil supply chain. Amid ongoing uncertainties in the Middle East, the two countries aim to build a collaborative framework with the UAE, a major oil-producing nation, to broaden their energy security base.
The Ministry of Trade, Industry and Energy announced that Minister Kim Jung-kwan met with Sultan Al Jaber, the UAE Minister of Industry and Advanced Technology and CEO of the Abu Dhabi National Oil Company (ADNOC), on the morning of July 8 to discuss measures for stabilizing key resource supply chains and expanding industrial cooperation.
During the meeting, the two sides signed a 'Strategic Cooperation Agreement on Oil Supply Chain' between the Ministry and ADNOC. The agreement includes provisions for stable oil supply, emergency supply response measures, and joint stockpiling. This aims to establish a reliable oil security cooperation system that can function effectively even in crisis situations such as conflicts in the Middle East.
In addition to key resource supply chains, discussions also covered topics of mutual interest, including artificial intelligence (AI) and energy infrastructure. The two parties exchanged ideas on cooperation for the application and expansion of AI in the refining and petrochemical industries. Minister Kim introduced the AI transformation project for the petrochemical industry being pursued in the Ulsan and Mipo industrial complexes, as well as examples of AI applications by domestic refining and petrochemical companies.
He also proposed the discovery of practical cooperation projects between companies and institutions from both countries, noting the similarities between ADNOC's AI application strategy across all oil-related business areas and South Korea's M.AX policy for AI transformation in manufacturing and industry.
This collaboration signifies that the partnership between the two countries can extend beyond mere oil supply stability to encompass the digital transformation and productivity enhancement of the refining and petrochemical industries. As the downturn in the petrochemical market persists, optimizing processes and improving energy efficiency through AI have become critical challenges for the domestic industry.
Discussions also included energy infrastructure projects, such as the expansion of oil and gas storage and transportation facilities to bypass the Strait of Hormuz. Minister Kim expressed that South Korean companies are seeking to participate in various ways, including design, procurement, and construction (EPC) contracts for key UAE projects, and requested the UAE's interest and support.
The Strait of Hormuz is a vital route for oil transportation in the Middle East, but it carries geopolitical risks. Therefore, enhancing bypass storage and transportation infrastructure holds significant strategic importance for energy security. Participation by South Korean companies in related projects could secure both the stability of the energy supply chain and opportunities for overseas plant contracts.
Minister Kim Jung-kwan stated, "Recent changes in the Middle East situation have entered a new phase, but securing the stability of key resource supply chains remains the most important task for our economic security. We will further strengthen our strategic partnership with the UAE, a major energy supplier."
He added, "It is necessary to explore various possibilities and opportunities for cooperation beyond key resource supply chains, including advanced industries like AI, and we will work closely with the UAE to ensure concrete outcomes in the future."
* This article has been translated by AI.
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