By Emily Beament, City Staff, PA News
Anglo-Irish oil and gas company Aminex today unveiled a deal to help develop the petroleum industry in North Korea. Aminex has won the opportunity to search for oil anywhere in the country as part of North Korea's drive to develop a local energy industry. Under the 20-year deal, Aminex will receive royalties on all oil drilled in the country in return for providing technical assistance and promoting the industry around the world. The company will also be entitled to an interest in wells drilled by incoming companies.
The highly secretive Communist state has an existing petroleum industry, with several wells drilled over the past 25 years. In a statement to the Stock Exchange, Aminex said there was a large potential for new discoveries — but progress had been held back by a lack of resources. The company signed the deal in June in Pyongyang, subject to closing conditions which have now been fulfilled. Chief executive Brian Hall said: "At present relations between North Korea and the outside world are strained but the important relationship with South Korea appears to be improving and commercial co-operation is on the increase. "An expanding energy industry may possibly help to build bridges between North Korea and the outside world." Shares rose 32% to 12.87p today. |