Ulsan: South Korea’s state-run oil company announced it has entered into an agreement with Kuwait Petroleum Corporation to store 4 million barrels of Kuwaiti oil, enhancing Seoul’s efforts to maintain a stable energy supply amid global uncertainties. The stored oil will be accessible in the event of a global energy crisis, ensuring that South Korea can meet domestic demand when necessary.

According to Yonhap News Agency, the Korea National Oil Corp. (KNOC) will store the oil in Ulsan, a southeastern industrial city in South Korea. This strategic storage plan comes amid rising tensions in the Middle East, particularly following the Israel-Iran conflict. The arrangement allows South Korea to secure crude supplies from the Middle East proactively, strengthening the country’s energy security measures.

For Kuwait, the agreement provides a strategic regional hub, ensuring a stable supply chain for its other Asian clients. The KNOC has previously entered into similar deals with Saudi Arabia and the United Arab Emi
rates, storing a combined total of 13.3 million barrels of crude oil in South Korea. This latest agreement with Kuwait is part of South Korea’s broader strategy to diversify and secure its energy resources.

The South Korean industry ministry noted that with the country relying on the Middle East for 72 percent of its crude oil demand, these agreements with key partners play a significant role in bolstering national energy security.