With oil supply concerns growing after Iran blocked the Strait of Hormuz, Korea National Oil Corporation (KNOC) said on the 6th it secured an additional 2 million Barrel of crude.
The corporation said that on this day, 2 million Barrel of internationally co-stockpiled crude from KPC (Kuwait Petroleum Corporation), Kuwait's state-run oil company, arrived at the Ulsan oil stockpiling base and that intake operations were underway. 2 million Barrel is Korea's daily oil consumption.
Earlier, the corporation signed an international joint stockpiling agreement with KPC in 2024 to store 4 million Barrel of crude at the Ulsan stockpiling base. International joint stockpiling refers to leasing out KNOC's idle storage facilities to overseas state-run oil companies and others to earn lease revenue in normal times while securing the right to purchase the crude on a preferential basis in an emergency.
On the day after taking office, new KNOC President Son Ju-seok visited the Ulsan oil stockpiling base to check readiness for releasing stockpiled oil in preparation for an oil supply crisis.
Son said, "If an oil supply crisis occurs, the corporation must help stabilize supply and demand through various measures, including releasing stockpiled oil, so that shocks do not hit the national economy," adding, "Through repeated simulations, we must ensure that the release of stockpiled oil can proceed without a hitch according to the processes set out in the manual."
Regarding the additional securing of 2 million Barrel of Kuwaiti crude, Son said, "The joint stockpiling project is a practical means to secure additional crude in a crisis," adding, "If necessary, we must be fully prepared to work closely with oil-producing countries so that domestic supply can proceed swiftly."
As of the end of February, the corporation operates nine oil stockpiling bases in Korea, including Ulsan, Geoje, and Yeosu. KNOC's total stockpiling capacity is 1.46 billion Barrel, with about 1 billion Barrel of stockpiled oil stored.