The suspected amount is enough to meet Korea’s gas demand for the next 29 years and oil demand for four years, and translates into a financial value of 2.2 quadrillion won ($1.64 trillion).
“According to the results of a geophysical survey, there is a high possibility that a massive amount of oil and gas is buried off the coast of Yeongil Bay in Pohang (in North Gyeongsang Province),” President Yoon Suk Yeol said in a briefing at the presidential office in Seoul.
“The results show that there is a very high possibility that up to 14 billion barrels of oil and gas are buried, and this has been verified by leading research institutions and experts,” he said.
The scale of the oil and gas estimated to be buried deep under the East Sea is more than 300 times the size of the East Sea gas field discovered in the late 1990s. It is estimated that this amount could supply the entire country with natural gas for up to 29 years and oil for up to four years, the president added.
Yoon said that the ministry has submitted an exploratory drilling plan which he approved, adding that the result of the exploration is expected to be known in the first half of 2025.
“If we start the first drilling work at the end of this year, we should have some results by the first half of next year. I ask the public to calmly wait for the drilling results,” the president said.
Seen is the Donghae-1 gas field platform in the East Sea, which began operations in 2004. Production ended in 2021. Courtesy of Korea National Oil Corporation
Since 1966, Korea has been attempting to explore offshore oil and gas fields. As a result, in the late 1990s, a gas field of 45 million barrels was discovered in the East Sea, and commercial production continued until 2021.
The development of oil and gas fields progresses through three stages: geophysical survey, exploration drilling, and commercial development. The president clarified that exploratory drilling is conducted to confirm the actual scale of resources buried underground.
“From now on, we will move on to the exploratory drilling stage to confirm whether oil and gas actually exist and how much is actually buried,” Yoon said.
Ahn Duk-geun, minister of trade, industry and energy, said that if it is confirmed that up to 14 billion barrels of oil and gas are buried, the value would be approximately five times the current market capitalization of Samsung Electronics. As of Monday, Samsung Electronics’ market capitalization was around 451 trillion won, indicating that the value would be about 2,255 trillion won.
Ahn Duk-geun, minister of trade, industry and energy, speaks in a briefing about a potential gas and oil field in the East Sea, at the presidential office in Yongsan District, Seoul, Monday. Yonhap
“It is expected that construction could start around 2027 or 2028, and commercial production could begin around 2035,” Ahn said. “The potential is so high that world-class energy development companies with significant experience and know-how have expressed their intention to take part in this development.”
The minister added that it is estimated that about 75 percent of the 14 billion barrels are gas, and 25 percent is oil.
A high-ranking ministry official also said that the probability of successfully achieving commercial production from this oil and gas field is 20 percent, which is very high.
“If we drill five times, one of them is a success. The previous East Sea gas field succeeded on the 11th drill attempt, meaning the first 10 failed. Nowadays, the technology level has improved to the point where drilling can succeed in about five attempts, and the success probability of this East Sea oil and gas field is 20 percent,” the official said.
He added that it is premature to estimate the required investment amount at this stage.
