Today's Articles are from the two conservative papers, the Chosun-Ilbo and the Donga-Ilbo. Both articles report that Hussain al-Shahristani, the Deputy Prime Minister for Oil, had guaranteed that in a event of Oil shortage in South Korea, Iraq will "prioritize" supplying South Korea with Iraqi oil. Furthermore, the two countries were to ensure cooperation in additional development including construction, and energy development.
All in all, a standard, largely routine article dealing with such events. The article's importance came from two implied assurance. First is that Iraq can replace South Korean's Iranian oil (at least for duration of conflict). Second is that Korean business still had many opportunities for investment in Iraqi economy.
What is left unsaid is the stability of Nouri al-Maliki's government in Iraq. Who is to say that the when Korea will actually need the Iranian substitutes, there will be a friendly Iraqi government to deliver on this verbal guarantee. Just as left unsaid is the questions about the oil producing capbility in Iraq, would it be able to produce and deliver the necessarily amount to meet the demand? Also, the article fails to mention the foreign competition for Iraqi oil in event of disruption in Iranian supply. Will South Korea be able to outbid China? After, all Asia's most voracious consumer is right next door (and seems to be determined to provoke Koreans lately).
As for business in Iraq... the next blog post will deal with that.
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