Donghae Daewang Whale Gas Field Deemed "Not Economically Viable"..."No Commercial Gas Recovery Possible"

"Gas saturation far below expectations"
Government's 120 billion won flagship project criticized for 'reckless exploration'

Yonhap News Agency

Korea National Oil Corporation's Donghae Deep-Sea Gas Field Development Project, known as the "Daewang Whale Project" and promoted as a key initiative by the Yoon Suk Yeol administration, has been concluded to lack economic feasibility.

According to materials submitted by Korea National Oil Corporation to the office of Song Jaebong, a member of the National Assembly's Trade, Industry, Energy, SMEs, and Startups Committee from the Democratic Party of Korea, the corporation conducted a detailed analysis of samples obtained from its first exploratory drilling. As a result, it determined that "there is no commercially recoverable level of gas."

From December last year to February this year, Korea National Oil Corporation independently carried out the first drilling at Daewang Whale, the most promising of seven prospective structures. After commissioning a specialized firm to conduct an analysis from late February to late August, it was revealed that the gas saturation was far below expectations.

Before drilling, it was projected that thermogenic gas would account for 50 to 70 percent, but in reality, the average proportion of biogenic gas was only about 6 percent. Gas saturation is a key indicator that determines the commercial viability of oil and gas fields.

Korea National Oil Corporation explained, "The drilling results showed that petroleum system elements such as reservoirs and cap rocks did not differ significantly from expectations, but thermogenic gas generated in deep source rocks was found not to have migrated to the Daewang Whale structure." The corporation added, "Based on the analysis results, we will develop more meticulous exploration plans and strive to increase the success rate of future exploration."

Assemblyman Song pointed out regarding the outcome, "When Korea National Oil Corporation spent about 120 billion won on drilling, the Yoon Suk Yeol administration stated that it would 'improve accuracy through further analysis' despite the failure, but the actual analysis results have severely damaged public trust."

He continued, "Future resource exploration in the East Sea must be conducted prudently and transparently, and the entire process should be made public. Responsible measures must follow the Yoon Suk Yeol administration's reckless pursuit of exploration."