South Korea will take part in a multi-billion-dollar project to develop new oil fields, facilities and shipping centers in Colombia, the Seoul government said Thursday. Under the joint project likely to be worth up to US$10 billion, the two countries will develop new oil fields in Colombia''s eastern Llanos grasslands, along with a pipeline to Colombia''s western coast for shipments to South Korea and other Asian markets, according to the Ministry of Knowledge Economy. Colombia is said to have oil reserves of 1.9 billion barrels, but nearly all of its daily production of 267,000 barrels is currently exported to the United States. "Knowing that Colombia is working to diversify markets for its oil, the ministry proposed the project that will help increase shipments to Asia by developing new oil fields, a pipeline, refinery and seaports," the ministry said in a press release. The countries signed a memorandum of understanding (MOU) Thursday on the sidelines of a summit between South Korean President Lee Myung-bak and visiting Colombian President Juan Manuel Santos, South Korean "Yonhap" News Agency reported. Under the MOU, South Korea will soon form a working group of government officials and representatives from private companies to set up detailed plans for the project by November and launch a joint feasibility study with Colombia before the year''s end, according to the ministry. Three South Korean companies, including the state-run Korea National Oil Corp., currently own stakes in 10 oil development projects in Colombia. "If the proposed project is successfully launched, the number of South Korean firms heading to Colombia will significantly increase while also helping to develop Colombia''s oil industry," the ministry said. A separate MOU was signed on the sidelines of the Lee-Santos summit, under which South Korea will help improve Colombia''s electric power supplies. Colombia is currently working to increase its electricity production from 13.5 gigawatts to 16.2 gigawatts by 2014, according to the ministry.