The South Korean Government has approved the launch of exploratory drilling for potentially important oil and gas reserves off Pohang, on the east coast of South Korea. The government simultaneously announced that there is a high probability that the designated area could contain as much as 14 Gboe of oil and gas.
The drilling project is estimated to cost more than KRW500bn (US$363m) and it will begin at the end of 2024. Commercial development could start around 2027-2028. The new prospects are potentially large enough to supply South Korea for 29 years of gas consumption and 4 years of oil consumption.
The prospects are significant, as South Korea is currently one of the world's largest energy importers. In 2023, the country imported over 64 bcm of natural gas and 137 Mt (2.7 Mbl/d) of oil. As of end 2023, South Korea had no oil proved reserves and gas reserves stood around 2.7 bcm.
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