It looks like Korea’s involvement in Iraq’s oilfields will expand from the North and all the way to the country’s South:

Iraqi President Jalal Talabani will visit Seoul Feb. 23 to meet with Korean President Lee Myung-bak, according to an unnamed source.

The visit, which has been delayed since last July due to internal matters in Iraq, is expected to pave the way for Korea to secure the right to develop oil and gas fields in southern Iraq, where the country’s largest reserves are deposited.

The Korea-Iraq summit will be held at Cheong Wa Dae and focus on economic cooperation. Lee is expected to call for a bigger role for Korea in oil and gas fields in southern Iraq in exchange for social infrastructure investment.

“The two leaders will discuss ways to solidify bilateral ties between the two nations. In particular, they will focus on social infrastructure construction projects bundled with oil and gas exploration in southern Iraq,” a source close to Cheong Wa Dae told The Korea Times, asking not to be named.

“Ahead of the planned bidding for oil and gas fields in the region, the government and the state-run Korea Gas Corporation (KGC) are working together behind the scenes,” he added. “I believe that the summit will help Korea get the upper hand in a bidding race.”

Talabani, former leader of the Patriotic Union of Kurdistan (PUK), one of the two main parties controlling the Iraqi Kurdistan region, has been keen on developing relations between the two nations. He once asked Korean firms in northern Iraq to participate in restoration projects in southern Iraq.

Cheong Wa Dae confirmed the planned summit but refused to elaborate. “It is highly likely that the two leaders will get together in Seoul this month,” Kim Eun-hye, a spokeswoman for the presidential office, said.

“However, it is not appropriate to comment on the summit before both nations make official announcements,” she added, refusing to reveal the exact date and details to be discussed.

The summit has been arranged as the bidding race for oil and gas fields in southern Iraq has gained momentum. The Iraqi oil ministry plans to host a meeting with 35 oil companies Feb. 12-14 in Istanbul, Turkey, to discuss details, including terms of contracts and bidding schedules.

The first bidding round was announced in June for eight oil and gas fields. In April 2008, the oil ministry announced a list of 35 oil companies that qualified to compete in the bidding.

The ministry is expected to announce the winners of the first round by June. KGC was selected among the 35 firms and is considering joining the bidding race, according to a company executive.

Oil and gas fields in southern Iraq have been considered a difficult area for Korea to tap as global oil giants, such as Exxon Mobil and British Petroleum already dominate the fields.

In the meantime, the Korea National Oil Corporation (KNOC) plans to go it alone in a massive oil development project in Iraq after talks with Korean companies over forming a consortium fell through, according to industry sources.

The state oil company signed an agreement with Iraq’s Kurdish regional government last September to drill for oil in eight blocks in northern Iraq in exchange for Korea providing $1.9 billion for their infrastructure projects.  [Korea Times]

I have always said that 2,300 businessmen would do more for Iraq then the 2,300 soldiers Korea recently withdrew from Iraq ever did.