SBOUL. Aug 7: A-South Korean oil company, Yukong Ltd. will take 40.000 tonnes of US-financed oil to North Korea this month under the nuclear agreement between Washington and Pyongyang. Yonhap news agency reported Sunday, says AFP.

A company spokesman said Yukong won the oil transportation tender on Friday from the Korea Peninsula Energy Development Organization (KEDO). the news agency said.

The New York-based KEDO was set up by the United States. Japan and South Korea to provide light water reactors find replacement energy to North Korea in return for halting its nuclear programme, suspected of producing nuclear weapons.

The tender stipulated thai the first shipment of Banker-C fuel oil is to be transported from Yukong's\ Ulsan Facilities in South Korea to the North's Sonbong Port on August 15. The last is to go August 24.