Seoul: Multiple foreign oil majors have expressed interest in participating in South Korea's deep-sea gas field development project, industry sources reported on Wednesday. At least two companies, whose identities remain confidential, have reviewed exploration data for potential oil and gas reserves in the East Sea provided by the Korea National Oil Corp. (KNOC).
According to Yonhap News Agency, the KNOC issued a bid invitation for the project in March, offering interested parties access to data from the first exploratory drilling of the potential reserves, alongside seismic and geological information. Foreign companies can apply to acquire up to a 49 percent stake in the project by June 20, with KNOC maintaining a majority stake. The preferred foreign bidder is expected to be selected in early July.
The South Korean government announced the discovery of seven potential oil and gas reserves in the East Sea off the coast of Yeongil Bay in Pohang, approximately 270 kilometers southeast of Seoul, last year. Among these reserves, the Blue Whale prospect showed signs of gas, although the hydrocarbon saturation rate was not deemed "meaningful enough" to ensure economic feasibility, as revealed by the Ministry of Trade, Industry and Energy in February.
The ministry acknowledged the failure to confirm the economic feasibility of the Blue Whale prospect but noted a "fine geological system" in other prospects.