The Korea National Oil Corporation (KNOC) has entered bidding to attract global investment for the deep-sea gas field in the East Sea. KNOC plans to complete the bidding by June 20 and start negotiations with the preferred bidder in July.
According to Onbid on the 23rd, the Korea National Oil Corporation announced the bidding for equity participation in the East Sea offshore block on the 21st. The bidding targets four seabed blocks in the Ulleung Basin (▲6-1S ▲8/6-1W ▲6-1E ▲8NE), covering a total area of approximately 20,058 square kilometers.
The Korea National Oil Corporation will operate an online and offline data room providing specific exploration information, such as geological drilling data for each block, from the 24th until the bidding deadline.
The Korea National Oil Corporation has limited bidding participation to large energy corporations with significant oil and gas production records or those that have previously collaborated with the corporation.
After the bidding period ends, the Korea National Oil Corporation will select the bidders in July following an internal review and evaluation. Selected companies can enter into contracts with the corporation for up to 30 years.
If successful in development, the royalty payment to the state will be between a minimum of 1% and a maximum of 33%. In case of development failure, companies can withdraw and forfeit their royalty rights if they meet the minimum work and expenditure requirements agreed upon.