Representatives of South Korea and Indonesia concluded the two countries' first joint working meeting on the energy sector Tuesday by signing memorandums of understanding (MoUs) on a number of projects involving estimated investments worth up to US$1.5 billion.

Witnessed by the South Korean Commerce, Industry and Energy Minister Kim Young Joo and Indonesian Energy and Mineral Resources Minister Purnomo Yusgiantoro, representatives of energy firms from both countries signed three MoUs on oil, gas and electricity ventures following on from Monday's meeting between the two sides.

State-owned Korea National Oil Corporation (KNOC) and SK Corp. signed a MoU on oil and gas exploration with Indonesia's national oil and gas firm Pertamina.

The second MoU was signed by Korea Western Power and state-owned coal mining company PT Bukit Asam for the construction of a 400-MW coal-fired power plant in West Bangko, South Sumatra, while the third one was signed by Korea Energy and Technology, and Indonesia's Nuansa Group for the building of the first direct coal liquefaction plant in East Kalimantan, with a capacity of 5,000 barrels per day.

The Korean delegates and their Indonesian counterparts also agreed to cooperate on the construction of a liquefied natural gas (LNG) receiving terminal in Indonesia, and to conduct a joint study on the preparation and planning for the construction of Indonesia's first nuclear power plant.

Kogas, the world's largest LNG importer, has said it was also interested in taking part in the development of a third train (processing unit) at the LNG plant in Tangguh, Papua.

In addition, Korea Electric Power Corp. (Kepco) and state-owned electricity firm PLN have also reached an initial agreement for the building of a gas-fired power plant in Bojonegara, Banten, with an installed capacity of 750 MW.

Minister Purnomo has estimated that the total investment in these projects could reach $1.5 billion.

"We hope that the meeting will serve as a good start for both countries for establishing strong and beneficial cooperation in the energy sector," Purnomo said.

Meanwhile, Korean minister Kim suggested that Tuesday's meeting should be followed up by the establishment of working groups, or the holding of one-and-one gatherings between the relevant parties.

The two sides agreed that a second joint meeting would be held in Seoul, South Korea, next year.

With its lack of energy and natural resources, South Korea is highly dependent on imports, partly from resource-rich Indonesia, to meet its energy needs.

South Korea, which imports 97 percent of its energy and resources needs, is trying to secure fuel supplies amid rising competition from other major importers, such as China and India. According to data from the Korean Ministry of Commerce, Industry and Energy, South Korean companies plan to invest a record $3.2 billion in overseas oil and gas projects this year and $577 million in minerals.