Andukgeun "First Drilling of East Sea Gas Field Not Subject to Preliminary Feasibility Study... Jo Gwanggwon to Be Newly Set Afterwards"

At the Industry Committee Audit on the 7th

Minister of Trade, Industry and Energy Anduk Geun stated on the 7th, "The first mandatory drilling of the Donghae gas field under the current production sharing contract is not subject to a preliminary feasibility study (PFS)."

Minister Ahn made this remark while attending the National Assembly's Trade, Industry, Energy, Small and Medium Venture Business Committee's audit of the Ministry of Trade, Industry and Energy on the same day.

Minister Andeok Geun of the Ministry of Trade, Industry and Energy is reviewing documents during the audit of the Ministry of Trade, Industry and Energy at the Industry, Trade, Industry, and Small and Medium Venture Business Committee held at the National Assembly on the 7th. Photo by Hyunmin Kim kimhyun81@

When Kim Seonghwan, a member of the Democratic Party of Korea, questioned that "since the total project cost of the Donghae gas field exceeds 576.1 billion KRW over five years, a PFS should be conducted through the Ministry of Economy and Finance," Minister Ahn refuted this.

Rep. Kim said, "According to the Act on the Management of Public Institutions, the total project cost refers to the sum of all expenses incurred in project promotion and, for ongoing projects, the total project cost for the first five years. Since the Minister of Trade, Industry and Energy reported to the Presidential Office that 'the first drilling will be carried out without any issues,' the procedure is being ignored and the project is proceeding," he stated.

In response, Minister Ahn explained, "The drilling planned for December this year is the mandatory drilling conducted by the Korea National Oil Corporation under the current production sharing contract, and it has already been planned. The projects following this year's mandatory drilling are not connected to this year's drilling but are entirely new projects."

He added, "After the first drilling in December is completed, we plan to establish a new production sharing contract, and the production sharing system has also been revised. Once the new contract is set and foreign investment is attracted, if a new project is undertaken, we will consult with the Ministry of Economy and Finance regarding the PFS as needed, depending on the investment situation."