Australia's Largest Oil Company Also Withdraws Saying "No Prospects in Korea"... Government Says "First Evaluation of Potential"

Dr. Vitor Abreu of Act-Geo, a U.S. company that suggested the possibility of oil deposits in the Yeongilman area of Pohang, Gyeongbuk, arrived at Incheon International Airport Terminal 2 on the 5th and is answering reporters' questions. He is expected to explain his analysis of the possibility of oil deposits during his visit to Korea. Photo by Jo Yongjun jun21@

Woodside Energy, an Australian oil development company that conducted an East Sea oil exploration project together with the Korea National Oil Corporation (KNOC), has been confirmed to have withdrawn from the 2023 project, sparking controversy. In response, the Korean government and KNOC stated, "Woodside decided to withdraw from the project during the business readjustment process and did not reach the promising structural stage."

On the 6th, the Ministry of Trade, Industry and Energy and KNOC explained, "Woodside extended the first exploration license (February 2007 to December 2016) again in April 2019 (until April 2019), but indicated its intention to withdraw in 2022 and withdrew in March 2023," adding, "We understand this was part of an overall readjustment of projects previously pursued, centered on global offshore projects, following the merger with Australian resource development company BHP in June 2022."

Woodside's 2023 semi-annual report on its website states, "We are continuously optimizing our exploration portfolio that is no longer considered prospective," and explains, "This includes the decision to withdraw from Deepwater Block 5 in Trinidad and Tobago and the official completion of withdrawal from activities in Canada, Korea, and Myanmar Block A-6."

Some media outlets reported this as "Australia's largest oil company concluding that the Yeongilman project has no prospects."

Capture of Woodside Energy Australia's 2023 Semiannual Report.

In response, the government and KNOC explained that Woodside's withdrawal decision is separate from the project's viability, and that after Woodside's withdrawal, they conducted evaluation work by adding new data.

The process of oil or gas development involves collecting physical exploration data, computer processing, interpreting data to derive promising structures, and confirming the presence of reserves through exploratory drilling. KNOC and Woodside conducted physical exploration together for 15 years starting in 2007. KNOC stated, "However, Woodside is judged to have withdrawn before reaching the promising structural stage, which is the preliminary step to actively promoting drilling through more precise and in-depth data interpretation."

KNOC stated, "Therefore, the interpretation that Woodside withdrew after concluding there was no prospect through in-depth evaluation of promising structures is considered inconsistent with the facts when considering all circumstances at the time."

KNOC commissioned Act-Geo, a deepwater exploration technology analysis specialist, in February 2023 to interpret accumulated exploration data, data handed over by Woodside upon withdrawal, and additional exploration data collected independently. Act-Geo analyzed the data using its advanced technology and expertise and newly derived promising structures, KNOC added.

Earlier, President Yoon Suk-yeol announced on the 3rd, during his first national briefing after inauguration, the possibility of large oil and gas field deposits around Yeongilman Bay in Pohang, Gyeongbuk. The government stated that based on Act-Geo's analysis, there is a possibility of up to 14 billion barrels of oil and gas deposits in the Yeongilman Bay area.

Act-Geo is a geological exploration consulting company founded by Dr. Vitor Abreu, former head of ExxonMobil's geology group. After questions about oil deposits in the Yeongilman Bay area arose mainly online, Dr. Abreu visited Korea in person on the 5th. On the morning of the 7th, Dr. Abreu is scheduled to hold a press conference at the Government Complex Sejong with KNOC and the Korea Institute of Geoscience and Mineral Resources to explain the analysis and evaluation process.