British Petroleum (BP), a major global oil company, has been selected as the preferred negotiator for the joint development of a deep-sea gas field in the East Sea.
On June 7, the Ministry of Trade, Industry and Energy announced that the Korea National Oil Corporation (KNOC) informed BP of the selection results last month after consulting with the ministry, and detailed negotiations are currently underway.
The project, known as the Blue Whale Project, aims to explore for gas and oil in promising structures in the East Sea, specifically in Blocks 8 and 6-1, located off the eastern coast of Pohang.
Former President Yoon Suk Yeol announced during a national briefing in June 2024 that geological surveys indicated a high likelihood of significant oil and gas deposits in the waters off Pohang. He stated, "Today, we approved the exploratory drilling plan for the East Sea oil and gas field," adding that initial drilling would commence by the end of the year, with results expected by the first half of the following year.
Following this, the Ministry of Trade, Industry and Energy reported in February of the previous year, after Yoon's impeachment, that preliminary results from the first drilling indicated some signs of gas, but the overall oil system structure was not deemed economically viable.
In September of the same year, KNOC confirmed that the Blue Whale structure was not economically feasible and decided against further exploration.
However, KNOC has continued to pursue the development of the East Sea deep-sea gas field by attracting foreign investment, and BP's involvement has prevented a complete halt to the project.
* This article has been translated by AI.
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