Andeok Geun "First East Sea Gas Field Strategy Meeting on the 21st... Reconfiguring Blocks Reflecting 'Daewang Whale' and Attracting Overseas Investment"

On the 17th at Government Sejong Complex
"Overseas Investment Inevitable... Will Create a Rational Profit Distribution Structure"

Anduk Geun, Minister of Trade, Industry and Energy, announced on the 17th that "a 'East Sea Deep Sea Gas Field Development Strategy Meeting' is scheduled to be held this Friday (21st)."

Minister Ahn said at the Government Complex Sejong on the same day, "Through this strategy meeting, we plan to prepare for block reallocation and institutional reform," adding this statement.

Anduk Geun, Minister of Industry and Energy (Photo by archive)

The government plans to select the first exploration drilling site in July and begin the first exploration drilling in December. For this, block reallocation and improvements in resource development-related systems are necessary.

Minister Ahn explained, "Developing the East Sea deep sea gas field requires astronomical costs, so funding and technology for deep-sea development are needed, and (attracting overseas capital investment) must go hand in hand." He added, "Since we do not have a system for profit-sharing structures, we will first reallocate blocks by promising structures, establish domestic systems that allow interested foreign companies to participate by region, and then attract foreign investment."

Currently, the East Sea deep sea is divided into three zones: Block 8, Block 6-1 Northern, and Block 6-1 Central-Eastern. However, newly discovered promising structures such as 'Daewanggorae,' where large amounts of gas and oil are estimated to be buried, span across existing block boundaries. For development and investment, new zoning must be organized. To reset the blocks, Korea National Oil Corporation currently plans to return the East Sea deep sea blocks, in which it holds 100% equity, to the government, and the government plans to grant new block development rights to the Oil Corporation according to the distribution of promising structures.

Regarding criticism about whether it was appropriate for President Yoon Seok-yeol to personally announce the East Sea deep sea gas field project, Minister Ahn said, "I understand there is much controversy because this is the first large-scale event in the history of the Republic of Korea." He added, "However, given the serious energy security issue, this scale of (gas and oil development) is a national matter that can be possible, so the briefing was held to report directly to the people."