South Korea has been handed exploration and production rights for fields in Iraq's oil-rich south as part of a deal worth $3.55 billion (£2.43 billion).

In return, South Korea will invest heavily in the war-torn country's infrastructure and help to build new power plants that will generate revenue and promote employment opportunities.

The deal was struck at a meeting between the heads of states of both countries held yesterday (February 25th) in Seoul.

In a statement, the South Korean presidential office announced that final details of the deal, which will also involve substantial investment in other national infrastructure, will be finalised in June.

According to the Korea Herald, Iraq hopes to build around 20 new reserves that will support the oil and gas industry and may also provide jobs for displaced workers through retraining programmes.

In addition to the reserves planned to service the country's 24 fields, the country is also looking to secure investment in new generators and an $8.4 million refinery.

5th Global Education and Training event for Oil and Gas: Exploration and Production