Kim Dong-seop, president of Korea National Oil Corporation (KNOC), tendered his resignation. After becoming embroiled in controversy during the National Assembly audit in Oct. over the so-called "Blue Whale project," it appears he offered to resign.
On the 14th, an official at Korea National Oil Corporation (KNOC) said, "President Kim expressed his intention to resign to the government." Under the Act on the Management of Public Institutions, the president of Korea National Oil Corporation (KNOC) submits a resignation to the Minister of Trade and Industry (MOTI). The Minister decides whether to accept the resignation; if accepted, the ministry notifies Korea National Oil Corporation (KNOC), and the KNOC board is also informed that the presidency has become vacant.
Kim took office on June 8, 2021, during the Moon Jae-in administration, and the three-year term ended as of July 7 last year. However, with the first drilling of "Blue Whale" among seven promising structures in the first phase of the East Sea deepwater gas field project approaching the end of 2024, Kim's term was extended for one year from Sept. 5, 2024, to Sept. 4, 2025.
The East Sea deepwater gas field development is a project to develop seven promising structures estimated to hold 14 billion barrels of gas and oil, with the area named Blue Whale expected to contain the largest reserves. However, the first exploratory drilling concluded that oil and gas reserves were insufficient and the economics were poor. In the end, Korea National Oil Corporation (KNOC) concluded in September that the Blue Whale prospect was not economically viable, effectively ending in failure.
However, bidding is underway to develop the second promising structure. Korea National Oil Corporation (KNOC) closed bids for the second structure on Sept. 19. A preferred negotiation partner has not yet been disclosed.