Andeok Geun: "Development of East Sea Deep Sea Gas Field, Attracting Investment Under the 'Principle of Maximizing National Interest'"

The government announced on the 21st that it will promote institutional improvements and attract investments related to the East Sea deep-sea gas field under the principle of maximizing national interest.

The Ministry of Trade, Industry and Energy held the "East Sea Deep-Sea Gas Field Development Strategy Meeting" at the Seoul Coal Hall on the same day, chaired by Minister An Deok-geun, with participation from related ministries, national research institutes, affiliated academic societies, resource public enterprises, and private companies to share progress and discuss drilling plans, institutional improvements, and investment attraction measures.

Minister Andeok Geun of the Ministry of Trade, Industry and Energy is delivering a keynote speech at the "East Sea Deep Sea Gas Field Development Strategy Meeting" held on the 21st at the main conference room of the Coal Hall in Jongno-gu, Seoul. Photo by Jinhyung Kang aymsdream@

Minister An stated, "Regarding the drilling plan, Korea National Oil Corporation has tentatively prepared a basic plan, and we plan to finalize details such as the location of the first well after appropriate review procedures." He added, "Regarding institutional improvements, the current Submarine Mineral Resources Development Act is not suitable for large-scale oil and gas field development, so institutional improvements are necessary."

The Ministry of Trade, Industry and Energy is considering dividing the mining rights in a way suitable for drilling exploration and development of promising structures, and adjusting the royalty rates to enable appropriate profit sharing between the government and investors.

Minister An emphasized that attracting investment is essential. He said, "Regarding investment attraction, Korea National Oil Corporation lacks experience in deep-sea development and operation, and since drilling one well costs more than 100 billion KRW, investment from domestic and foreign companies is absolutely necessary to secure the technology and funds required for development and operation and to disperse risks." He added, "The government plans to strive to attract domestic and foreign investments under the principle of maximizing national interest."