Gov't to redraw East Sea blocks to reflect potential discovery of oil, gas reserves

Second Vice Industry Minister Choi Nam-ho speaks at a press conference about potential discovery of oil and gas reserves in Sejong, June 10. Yonhap

The industry ministry said Monday it plans to redefine the deep-sea blocks in the East Sea to reflect the recent potential discovery of gas and oil in the region, as part of efforts to pursue phased development.

Second Vice Industry Minister Choi Nam-ho said that the government will reconfigure the deep-sea areas of the East Sea, currently divided into three sections, to facilitate efficient development and attract investment.

The announcement follows Korea's recent discovery of seven locations with potential oil and gas reserves in the East Sea.

The government estimates that the deposits could hold between 3.5 billion and 14 billion barrels of gas and oil. If confirmed, this quantity would be sufficient to meet the country's gas and oil demand for up to 29 years and four years, respectively.

As part of this adjustment, the state-run Korea National Oil Corp. (KNOC) plans to return its stakes in the deep-sea reserves of the East Sea, with the government planning to reallocate the development rights.

"To cut costs and reduce risks, the government will proactively review attracting investment," the ministry said in a statement. "We will seek to attract investment in phases for each redefined block." (Yonhap)