SEOUL: South Korea’s state-run Korea National Oil Corp. (KNOC) has appointed S and P Global as its adviser for exploring potential oil and gas reserves in the East Sea, a move poised to significantly bolster the nation’s energy resources. The exploration project aims to map out reserves estimated between 3.5 billion and 14 billion barrels of gas and oil, which could meet the country’s gas demands for up to 29 years and oil demands for four years.
According to Yonhap News Agency, the collaboration between KNOC and S and P Global will focus on developing a strategic plan to attract necessary investments for this high-potential project. The announcement follows a recent roadshow hosted by KNOC to garner interest from major global energy firms such as ExxonMobil, Saudi Aramco, and Eni, indicating strong international attention in the project.
The exploration costs present significant challenges, with the price tag for drilling a single hole estimated between 100 billion won (US$75.3 million) and 130 billion won
. Despite these financial hurdles, South Korea is committed to initiating the first drilling operation by December, underlining the urgency and priority of achieving energy self-sufficiency.