South Korea's Ministry of Trade, Industry, and Energy announced that it has selected a site in the East Sea for its first drilling operation, set to begin next month.
The operation is part of an ambitious project to explore potential gas and oil reserves that could range from 3.5 billion to 14 billion barrels.
The drilling ship is expected to arrive in Busan in mid-December, with the operation anticipated to take two months.
Industry Minister Ahn Duk-geun emphasized that the success of the first drilling is not the primary focus but rather the insights gained for future efforts.
If the reserves are confirmed, they could meet South Korea’s gas demand for up to 29 years and its oil demand for four years.
However, the project faces significant costs, with each drilling operation estimated at 100 to 130 billion won (US$71.5 million to US$93 million). To support the project, the Korea National Oil Corporation (KNOC) has engaged S&P Global as an adviser and is seeking investment from both domestic and international businesses.
Results from the first drilling are expected to be announced in the first half of next year.
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