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An image released by the presidential office on June 3, 2024, shows where oil and gas may lay off the eastern coast of the peninsula. (Yonhap)

South Korea’s president announced Monday that geophysical exploration has shown that there are likely 14 billion barrels of oil and gas off the coast of Pohang, in the country’s southeast. 
 
The sudden announcement was met with excitement in the industry, but also with caution, with some stating that nothing is for certain until drilling starts. 
 
“Today, I approved the Ministry of Trade, Industry and Energy to go ahead with the exploratory drilling deep in the East Sea,” Yoon said Monday in a briefing at the presidential office in Yongsan, Seoul. 

“After my administration came into office, we believed that more oil and gas fields were likely to exist around the East Sea gas field, so in February 2023 we entrusted a world-class deep-sea technology evaluation company to conduct an in-depth geophysical exploration analysis,” he said.
 
“The latest results showed that there is a very high probability of 14 billion barrels of oil and gas, which has been verified by leading research institutes and experts. This is more than 300 times the size of the East Sea gas field discovered in the late 1990s, and it is estimated that the entire country can use natural gas for up to 29 years and oil for up to four years,” said Yoon.

One barrel is equal to 159 liters. 

After remarks on gas and oil markets during a briefing on June 3, 2024, President Yoon Suk-yeol hands the mic to Industry Minister Ahn Duk-geun. (Yonhap)

 
Yoon said that it is now time to move on to the exploration and drilling phase to determine if the oil and gas reserves do indeed exist and to determine their size. 

“We need to drill at least five boreholes, each of which will cost more than 100 billion won. The world’s top energy development companies are already showing interest,” the president continued, expressing hope that the Korean public will keep an eye out for further developments. 

Energy Minister Ahn Duk-geun, who was present during Yoon’s announcement, stated, “The actual drilling will start around December, and the results will become official in the first half of 2025. If we do confirm oil and gas reserves, commercial development will be targeted for 2035.”
 
Ahn stated that there could be up to 14 billion barrels of reserves, which he said at current value would be worth 2.27 trillion won (US$1.65 billion), or five times the market capitalization of Samsung Electronics (453 trillion won as of June 3). 
 
But not everyone was immediately optimistic about the announcement. 

“It seems hasty for the president to announce an estimate of gas reserves before anyone has confirmed the quantity or economic value of the reserves,” said Democratic Party spokesperson Lee Hae-sik. 
 
Climate Strike Korea, a coalition of over 350 civil society organizations, issued a statement to criticize what they said was “the irresponsible move of further developing additional oil and gas fields, which will only accelerate the climate crisis.”

By Lee Seung-jun, staff reporter; Park Ki-yong, staff reporter

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