Home > Chemical News

Chemical News

Asia: S Korea eyes South America to diversify crude import sources

https://www.chemnet.com   Mar 09,2011 Platts
South Korea has dispatched an energy delegation that includes officials from state-run Korea National Oil Corp to South America to seek oil development opportunities as part of efforts to diversify its crude import sources, the energy ministry said Tuesday.

Energy and resources ambassador Kim Eun-Seok is leading the 23-member team comprising government officials and energy-related public and private firms on the March 7-19 trip.

During its visit to Peru, the delegation plans to meet state oil licensing agency Perupetroto discuss developing new oil and gas blocks in the country.

In return, South Korea could offer projects to build airports, power plants and improve other infrastructure in Peru, the ministry said.

The South Korean energy delegation will also travel to Ecuador and Trinidad and Tobago to seek opportunities to develop oil, gas and other resources. "We hope to expand ties with Trinidad and Tobago which has reserves of 800 million barrels of crude oil and 15 trillion cubic feet of natural gas,' the ministry said.

The visit comes at a time when South Korea is struggling to diversify import sources other than the volatile Middle East.

Energy-poor South Korea, the world's fifth-largest crude importer, is vulnerable to rises in oil prices because it imports almost all of its crude requirements. More than 82% of South Korea's imported oil comes from the volatile Middle East and most of the transported to the country through the Straits of Malacca, which are plagued by piracy.

In January, South Korea imported 70.80 million barrels from the Middle East, accounting for 84.9% of its total crude import of 83.38 million barrels, according to the energy ministry. Its crude imports in January increased 11.0% year-on-year, but its bill jumped 31.0% to $7.6 billion due to higher prices.

South Korea's imports of crude oil in 2010 increased 4.5% from the previous year to 872.4 million barrels, or 2.39 million b/d, but its bill surged 35.4% to $68.7 billion due to higher international prices.

 Print  |    add to Favorites  |    Close