Export-Import Bank Provides $1 Billion to Korea National Oil Corporation to Strengthen Resource Security

Export-Import Bank and Korea National Oil Corporation Sign MOU to Strengthen Oil Resource Security and Cooperation

Visiting Kyu, President of the Export-Import Bank (left in the photo), signed a "Business Agreement for Strengthening Oil Resource Security and Transition to Eco-friendly New Energy" with Kim Dong-seop, President of Korea National Oil Corporation, at the bank's headquarters on the afternoon of the 25th.

[Asia Economy Reporter Park Sun-mi] The Export-Import Bank of Korea (KEXIM) will provide a total of $1 billion in financing to the Korea National Oil Corporation (KNOC) to secure stable petroleum resources and support sustainable energy transition projects.

On the 26th, KEXIM announced that it signed a "Business Agreement to Strengthen Petroleum Resource Security and Promote Eco-friendly New Energy Transition" with KNOC. KEXIM President Bang Moon-kyu met with KNOC President Kim Dong-seop at KEXIM's headquarters in Yeouido the previous afternoon and signed the agreement.

The main contents of the agreement include KEXIM providing a total of $1 billion in financing for ▲domestic and overseas petroleum resource acquisition projects ▲importation of strategic oil reserves and construction of storage facilities ▲eco-friendly new energy projects such as offshore wind farms and carbon capture, utilization, and storage (CCUS).

This agreement was signed amid rising importance of resource security due to recent surges in raw material prices and supply chain instability, as well as increasing social demands for sustainable energy supply. Through this agreement, KNOC is expected to reduce its reliance on overseas borrowing and lower financial costs. KEXIM plans to further strengthen efforts to secure low-carbon energy resources such as natural gas and hydrogen through cooperation with domestic resource development companies, starting with this agreement with KNOC.

At the signing ceremony, KEXIM President Bang Moon-kyu said, "We expect that the synergy between KEXIM’s extensive experience in supporting overseas projects and KNOC’s long-standing capabilities in resource exploration and development will greatly strengthen the national petroleum resource security system," adding, "We will actively support KNOC’s eco-friendly new energy projects, including the offshore wind farm project utilizing the East Sea gas field."