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“There is a high possibility of 14 billion barrels of oil and gas reserves in the East Sea… “Drilling plan approved”
First government briefing… “300 times the size of the East Sea gas field… “Exploration drilling results are expected to be released in the first half of next year.”
- Reporter nameipnnews
- Entered 2024.06.03 11:34
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“Physical exploration results show that there is a high possibility of huge oil and gas deposits in the waters off Yeongil Bay”
Industry Minister Ahn Deok-geun said, “Commercial development will begin in 2035… Its value is 5 times the market cap of Samsung Electronics.”
(Seoul = Yonhap News) [ipn News] President Yoon Seok-yeol said on the 3rd, “Physical exploration results have shown that there is a high possibility that a huge amount of oil and gas are buried in the waters off Yeongil Bay in Pohang, Gyeongsangbuk-do.”
President Yoon held his first government briefing since taking office this morning at the Presidential Office in Yongsan, with Minister of Trade, Industry and Energy Ahn Deok-geun in attendance, and said, “I would like to report this fact to the people.”
President Yoon explained, “After taking office in February of last year, we entrusted an in-depth physical exploration and analysis to a world-class company specializing in deep-sea technology evaluation, based on the judgment that there was a high possibility that more oil and gas fields exist around the East Sea gas field.”
President Yoon said, “Recent results showed that there is a very high possibility that 14 billion barrels of oil and gas are buried, and it has also been verified by leading research institutions and experts.”
President Yoon added, “This is more than 300 times the size of the East Sea gas field discovered in the late 1990s, and it is believed that the entire country can use natural gas for up to 29 years and oil for up to 4 years.”
He said, “As a deep-sea mine, the amount of exploration resources is greater than the 11 billion barrels in the Guyana mine in South America, which is considered the largest oil development project of this century.”
“Oil and gas field development is carried out in three stages: physical exploration, exploratory drilling, and commercial development,” he said. “Now, it is time to move on to the exploratory drilling stage, which checks whether actual oil and gas exists and how large the actual deposit is.” revealed.
He also explained, “At least five boreholes need to be drilled, and each borehole costs over 100 billion won,” adding, “The world’s top energy development companies are already showing interest.”
President Yoon approved the Ministry of Trade, Industry and Energy’s exploratory drilling plan on this day, and said that some results will be released by the first half of next year, adding, “I ask the public to calmly observe the drilling results.”
Minister Ahn said, “We closely communicated with the President’s Office about the results confirmed last week and reported the exploration results directly to the President yesterday.” He added, “The President approved the exploration plan, saying that although it is a project that requires a large budget, it is of sufficient value. A follow-up will be held soon. “I will prepare a plan,” he said.
Minister Ahn said, “The possibility is so high that global energy development companies with considerable experience and know-how have expressed their intention to participate in this development.” He added, “It is estimated that a huge amount of about 14 billion barrels is buried, and three-quarters of them are buried.” “Gas and oil are estimated to account for one quarter,” he said.
Minister Ahn explained that the specific future schedule is for construction to begin around 2027 or 2028 and commercial development to begin around 2035.
Minister Ahn also mentioned that the value of this store is currently five times the market capitalization of Samsung Electronics.
As of last weekend, Samsung Electronics’ market cap was calculated to be about 440 trillion won, which means it is worth about 2,200 trillion won.
Regarding exploration costs, he said, “There are some things that are difficult to estimate at this stage,” and added, “I understand that the total cost of the East Sea gas field, which produced 45 million barrels of gas, was about 1.2 trillion won.”ipnnewsipip519@gmail.com
