This undated file photo provided by the Korea National Oil Corp. shows a gas plant in the East Sea. (Image courtesy of Yonhap)
SEOUL, Sept. 25 (Korea Bizwire) — Preparations have been under way for the first exploratory drilling in December for potential oil and gas reserves off the nation’s East Sea, officials said Wednesday.
Industry Minister Ahn Duk-geun hosted a meeting with related agencies in Seoul to review the progress of preparations for a project in the East Sea that could potentially uncover between 3.5 billion and 14 billion barrels of gas and oil, according to the Ministry of Trade, Industry and Energy.
If confirmed, the quantity would be sufficient to meet the country’s gas demand for up to 29 years and its oil demand for four years.
During the meeting, participants discussed ways to revamp the country’s resource development rules, including those regarding prospecting rights and fees, to support the unprecedented development project.
“We plan to carry out the first drilling operation in December without delay and revamp policies regarding prospecting fees within this year so that the country can attract investment from prominent companies,” Ahn said.
The state-run Korea National Oil Corp. (KNOC) recently hosted a road show to attract foreign investment. Industry sources said major global players, including U.S.-based ExxonMobil, Saudi Aramco and Italy’s Eni, have shown interest in the project.
Costs have been one of the major hurdles for the development project, as drilling a single hole is estimated to cost around 100 billion won (US$75.3 million) to 130 billion won.
KNOC said it plans to select a consulting firm in October to set detailed strategies for attracting foreign investment.
Meanwhile, the U.S. geoscience research company Act-Geo earlier assessed that each drilling operation has a success rate of 20 percent, with the government planning to carry out at least five drilling operations.
(Yonhap)
