S.Korea's Yoon says to explore vast oil, gas prospects off east coast (updated)

Daesung Energy

03/06/2024 02:23

(Adds more details, energy related share prices)
       SEOUL, June 3 (Reuters) - South Korean President Yoon
Suk Yeol said on Monday he gave the green light to conduct
exploration drilling of potentially vast oil and gas prospects
that had been found off the country's east coast.
    The possibility of the area containing as much as 14 billion
barrels of oil and gas is "very high," Yoon told a news
conference citing a study that he said has been reviewed by
experts and industry groups.
    "Today, I approved the Ministry of Trade, Industry and
Energy to go ahead with the drilling for exploration in the deep
sea in the east sea," Yoon said.
    The drilling project is estimated to cost 500 billion won 
($362.5 million) and it will begin near the end of the year with
the hope of producing a finding by the first half of next year,
he said.
    Yoon said South Korea has conducted a series of explorations
for oil and gas beginning in 1996 and tapped a gas reserve of
about 4.5 million barrels. Commercial development of that
reserve was completed in 2021, he said.
    The new prospects are potentially large enough to contain
enough gas that would fuel the country for 29 years and oil
equivalent to four years of consumption, he said.
    South Korea is the world's fourth-largest buyer of crude and
gas, according to the Korea National Oil Corporation, and the
world's ninth-largest energy consumer. 
    Energy stocks jumped after Yoon's announcement. 
    Shares of SK Innovation  096770.KS  were up more than 6%,
Korea Gas Corporation  036460.KS  rose more than 8%, SK Gas
 018670.KS  was up more than 8%, and Daesung Energy  117580.KS 
surged more than 13%.
($1 = 1,379.1500 won)

 (Reporting by Jack Kim, Hyonhee Shin and Jihoon Lee; Editing by
Jacqueline Wong and Jamie Freed)
 ((jack.kim@thomsonreuters.com; +822 6936 1455;))