A joint venture has been formed by three firms from South Korea and one from Britain to develop energy-related business opportunities and projects including nuclear, both in South Korea and internationally.
|The parties sign the JV agreement at Downing Street, joined by Lee Myung-bak and Gordon Brown(Image: Amec)
The agreement to form the joint venture was signed by Amec, Korea Electric Power Co (Kepco), Korea Gas Corp (Kogas) and the Korea Development Bank (KDB). It was signed in presence of UK prime minister Gordon Brown and South Korean President Lee Myung-bak in Downing Street, London, prior to the start of the G20 summit.
A memorandum of understanding (MoU) was signed in October 2008 between Amec, Kepco and Kogas to develop such cooperation. KDB later joined and in January the four companies signed a two-year cooperation agreement to work towards the formation of the joint venture company.
The aim of the joint venture is to share expertise in developing, constructing, managing and operating a wide range of energy projects and facilities. This will include nuclear power, thermal power generation, gas, renewable energy and carbon reduction.
Amec - which has worked in South Korea since 2005 - is to provide expertise in program and project management, supply chain management, design, licensing and operations in nuclear new build, radioactive waste management and nuclear decommissioning, as well as in power generation. Amec also has expertise and knowledge in project management consultancy, front-end design, engineering, asset operation and maintenance in the oil and gas industry.
Kepco is to contribute expertise in designing, constructing, operating and maintaining nuclear reactors and power generation facilities. Kogas is the owner and operator of a national downstream gas infrastructure serving both commercial and domestic customers. KDB leads the Korean national investment program.
Samir Brikho, CEO of Amec, said, "We are delighted to sign this agreement just ahead of such an important event as the G20 conference." He added, "The creation of the joint venture is a major step forward in the development of our relationship and the fact that this is signed in Downing Street in the presence of the Prime Minister and President Lee is testimony to that."
Brikho noted, "Amec, Kepco, Kogas and KDB each have significant capability and expertise across a wide range of geographies, markets and assets and we have already identified opportunities and regions where our combined skills can be applied. We now look forward to finalising the formal make-up of the company."
According to a report in the Korea Times, the four companies will set up a $30 million joint venture in Korea in October 2009 and will start operating plant-building and energy exploration businesses. Under the agreement, the report said, Amec holds a majority 54%, with Kepco, Kogas and KDB holding stakes of 19%, 15% and 12%, respectively.