South Korea Discovers Major Offshore Oil And Gas Reserves — Enough To Fuel Nation For Decades, President Announces

In a recent move by South Korea which heavily relies on imports of overseas gas and oil, the country announced today it found a potentially massive reserve of oil and gas offshore close to the southeastern territory.

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What Happened: President Yoon Suk-yeol announced on Monday that significant oil and gas reserves might be located off the coast of Pohang, according to Chosun.

During his first national briefing at the presidential office in Seoul, President Yoon revealed that recent physical surveys suggest up to 14 billion barrels of oil and gas could be buried in the area. This discovery has been verified by leading research institutions and experts.

President Yoon explained that natural gas reserves can be used by the entire country for up to 29 years, and oil reserves can be used for up to 4 years, YunhanNews TV reported.

If converted to current economic value, it is estimated to be worth $1.4 trillion, which is five times the market capitalization of Samsung Electronics, according to Hankyung.com, a unit of Korea Economic Daily.

President Yoon emphasized that this potential reserve is over 300 times larger than the Donghae gas field found in the late 1990s. He stated that drilling operations would commence by the end of the year, with preliminary results expected by the first half of next year.

The development process involves three stages: physical surveys, exploratory drilling, and commercial development. President Yoon also approved the Ministry of Trade, Industry, and Energy’s plan for exploratory drilling in the Donghae deep-sea oil and gas field.

President Yoon highlighted South Korea’s continuous efforts in offshore oil and gas exploration since 1966, leading to the discovery of the Donghae gas field, which produced commercially until 2021. He noted that in February 2023, the government commissioned a deep analysis from a top-tier deep-sea technology evaluation firm, suspecting more reserves near the Donghae gas field.

Why It Matters: The potential discovery of 14 billion barrels of oil and gas off the coast of Pohang could significantly impact South Korea’s energy landscape. The country has been heavily reliant on energy imports, and this find could reduce its dependency on foreign oil and gas. In 2023, South Korea imported 1.0577 billion barrels of crude oil and natural gas imports amounted to 44.15 million tonnes, according to Energy News which cited data from Korea National Oil Corporation.

Moreover, the discovery comes at a time when global energy markets are experiencing volatility due to geopolitical tensions and supply chain disruptions. The potential reserves could provide South Korea with a strategic advantage in securing energy supplies and stabilizing domestic energy prices.

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