Land Holding Billions of Barrels of Unexplored Crude Oil Could Be This Country's Salvation – Executive Summary

Land Holding Billions of Barrels of Unexplored Crude Oil Could Be This Country's Salvation – Executive Summary

South Korea, a country that relies heavily on energy imports, may be about to radically change its energy story. The government has given the green light to drill an underwater field that could contain up to 14 billion barrels of oil and gas, representing a potential game-changer for the Asian nation.

South Korean President Yoon Suk-yeol announced the initiative in a press conference, citing a specialized study indicating a “high probability” of the presence of hydrocarbons in the region. The exploration area is located in Yongil Bay in the city of Pohang, southeast of the country. Preliminary estimates indicate that the size of the reserve could supply national gas consumption for 29 years and oil consumption for 4 years, as revealed by The Economista.

The Ministry of Trade, Industry and Energy has already granted approval for the exploration and prospecting plan. The results of exploratory drilling are expected in the first half of 2025. The project, which is estimated to cost more than 500 billion won (about 334 million euros), will begin later this year.

Discovering and developing the land commercially could mean a radical change in South Korea's energy matrix, significantly reducing its dependence on imports. The country can thus become a net energy exporter, enhancing the economy and energy security.

This discovery could also promote the development of other related industries, such as refining and petrochemicals.

However, it could take years to confirm reservations and develop the land commercially. The costs of extraction and the environmental impacts of exploration must be carefully considered. It is crucial to ensure transparent and accountable management of resources, with the participation of civil society.

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By Andrea Hargraves

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