S. Korean, Australian firms to seek oil, gas in East Sea

By Lee Joon-seung
SEOUL, Aug. 13 (Yonhap) -- South Korea's state-run oil company and an Australian
energy firm will conduct exploratory drilling for oil and gas in the East Sea,
the government said Thursday.
The Ministry of Knowledge Economy said Korea National Oil Corp. (KNOC) and
Woodside Energy Ltd. reported finding several promising undersea features in
block zones 8 and the northern part of 6-1 that may hold fossil fuel.
"Detailed analysis of features examined by the end of June showed there is a good
chance that commercially viable reserves may be found off the east coast," a
government official said.
Block 8 is an area east of Yeongdeok, North Gyeongsang Province, while Block 6-1
lies off the large industrial city of Pohang. The area is part of the Ulleung
Basin region with exploration to take place on features that are 1,000-2,000
meters below the surface of the sea.
The planned drilling in the two blocks covering 12,560 square kilometers will be
the second phase of exploration following preliminary seismic examinations which
began in 2007. Actual drilling to check for resources should start in early 2011.
The ministry in charge of the country's industrial and energy policies said that
drilling and more detailed seismic surveys will take place up till 2013 with the
South Korean and Australian companies owning 50-50 stakes in the project.
Woodside is well-known in the industry and has the proven capabilities in seeking
energy resources in deep water. The company took notice of the East Sea after gas
and oil were produced from a well in the region in 2004. The KNOC discovered a
modest reserve there in 1998.
The last time that a foreign company sought oil and gas in the East Sea was in
the early 1990s, with Britain's Kirkland Resources pulling out in 1994 after
finding no reserves.
yonngong@yna.co.kr
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