Government "Responding to Export Disruptions in the Oil Industry... Diversifying Reserve Oil and Simplifying Loan Procedures"

Park Seong-taek, Vice Minister of Industry, Visits Refining and Petrochemical Export Sites

Due to recent declines in international oil prices and delays in transport vessels caused by adverse weather conditions, exports of petroleum products and petrochemicals have faced difficulties. In response, the government has decided to diversify the types of stockpiled oil and significantly simplify the procedures for borrowing stockpiled oil to prevent disruptions in production and exports.

The Ministry of Trade, Industry and Energy announced that First Vice Minister Park Seong-taek visited HD Hyundai Oilbank and HD Hyundai Chemical located in Seosan, Chungnam on the 5th to inspect the export sites of petroleum products and petrochemicals and discuss export expansion plans with the industry.

Exports of petroleum products ($3.7 billion, -18.7%) and petrochemicals ($3.6 billion, -5.6%) in November decreased compared to the same month last year due to a drop in export unit prices influenced by oil prices. Dubai crude oil fell by 13.1%, from $74.9 per barrel in October to $72.6 per barrel in November this year.

In particular, HD Hyundai Oilbank experienced some disruptions in exports and production as the entry of five product transport vessels and three crude oil import vessels was delayed in the last week of November due to adverse weather. Similarly, HD Hyundai Chemical, which uses the same port, saw a decrease in November exports due to delays in loading five product transport vessels.

Vice Minister Park said, "Exports of petroleum products and petrochemicals, which account for 15% of Korea's exports, are facing difficulties due to unexpected factors such as product price declines linked to oil prices and adverse weather conditions. However, despite these challenging conditions, our petroleum products and petrochemical industries have been dedicated to exports, resulting in export volumes increasing by 4.9% and 7.5% respectively."

He added, "The government will diversify the types of stockpiled oil from the current focus on heavy oil to include light oil and others, considering the types of oil used by each refinery, to prevent disruptions in production and exports caused by unexpected adverse weather like this time. We will also significantly simplify the procedures for borrowing stockpiled oil to promptly provide it when companies need it."