Minister Kim Jung-kwan of the Ministry of Trade, Industry and Energy said that while there were regrettable aspects in the process of the deepwater gas field development project in the East Sea promoted by the previous Yoon Suk-yeol administration, the project cannot be considered a failure.
On the 13th, at the National Assembly's Trade. Industry Energy. SMEs. and Startups Committee audit of the Ministry of Trade, Industry and Energy, Minister Kim said this in response to related questions from Seo Il-jun of the People Power Party, noting, "The history of resource development is a process of countless 'supreme and most difficult' histories."
When Seo asked about the drilling failure at "Blue Whale," one of 20 promising structures in the East Sea deepwater gas field, saying, "If one fails, is it a failure?," the Minister answered, "That's not the case."
When Seo went on to note that the East Sea gas field off Ulsan, which ended production in 2021, succeeded in drilling after 11 attempts, and the Guyana oil field in South America, regarded as the world's largest oil field, succeeded after 13 attempts, Minister Kim said, "There have been many attempts, dozens of times in history, so I don't think it's something that works with just one try."
When Lee Jong-bae of the People Power Party then asked, "What do you think was the problem in the East Sea oil field project?," the Minister answered, "I think there were regrettable aspects in procedures and communication during the process."
He added, "There were issues such as not disclosing materials even though there was enough material to disclose, and issues in the selection process of ActGeo, an advisory firm with a strong one-person-company character," and said, "I hope it becomes transparent."
The Lee Jae-myung administration has decided not to make additional budget injections into the East Sea deepwater gas field development project that the previous administration pushed as a priority. However, it is taking a hands-off stance on Korea National Oil Corporation (KNOC)'s independent development through attracting foreign capital.
Last month, the oil corporation closed international bidding to find overseas business partners to participate in the project starting from the second exploratory drilling of the East Sea deepwater gas field, and multiple foreign oil companies expressed their intent to participate. The oil corporation plans to select a preferred negotiation partner as early as this month and enter detailed negotiations.