As the global energy supply-and-demand crisis deepens due to the Middle East situation, the government decided to urgently import an additional 18 million barrels of crude oil from the United Arab Emirates (UAE). Including the 6 million barrels previously finalized for emergency import, the total comes to 24 million barrels. Korea's daily crude oil consumption is about 2 million to 3 million barrels, effectively securing roughly 10 days' worth of oil. In particular, it secured the qualification for "priority crude oil supply" from the UAE.
Kang Hoon-sik, the presidential chief of staff, who returned on the 18th after visiting the UAE as a special envoy for strategic economic cooperation on behalf of President Lee Jae-myung, said at a Cheong Wa Dae briefing, "Amid the global emergency in crude oil supply, the UAE promised to give Korea the highest priority for crude oil supply," adding, "There will be no country that receives oil before Korea, and they clearly promised that Korea has the No. 1 priority for oil supply."
◇ Strait of Hormuz blocked and war drags on… Iran warns of "$200 per barrel"
Following U.S.-Israeli airstrikes on Iran, Iran has effectively sealed the Strait of Hormuz and is carrying out attacks on Gulf countries including the UAE. Iran's leadership has said to brace for "$200 per barrel" and intends to continue the war. The problem is that about 70% of Korea's crude oil imports come in through Hormuz. The government is responding with measures such as a price cap and fuel tax cuts, but as long as the strait remains closed, oil prices can only continue to rise.
In this situation, Cheong Wa Dae announced it decided to urgently import a total of 18 million barrels of crude oil from the UAE via alternative supply routes outside the Strait of Hormuz. First, 6 million barrels will be supplied using three UAE-flagged vessels of 1,000 each, and then 12 million barrels will be supplied using six Korean vessels. In addition, one ship loaded with naphtha is currently heading to Korea.
Kang said that during this visit to the UAE he met with President Mohamed bin Zayed Al Nahyan, Khaldoon Khalifa Al Mubarak, chairman of the Executive Affairs Authority of Abu Dhabi, and Sultan Al Jaber, minister of industry and advanced technology and CEO of the Abu Dhabi national company, and agreed that "whenever Korea needs it, it can urgently purchase UAE crude." The two countries also decided to sign a memorandum of understanding (MOU) that includes measures to "seek alternative routes for crude oil supply" as a long-term supply plan.
Kang said, "From immediately after the Middle East situation began, Director Khaldoon and I shared real-time updates via a hotline and discussed necessary matters," adding, "From Mar. 6, one week after the Middle East situation began, the UAE immediately lifted its airspace closure, and UAE-flagged airlines resumed direct flights from Dubai and Abu Dhabi to Korea." He also said, "On Mar. 8, an Etihad Airways charter was arranged, and thanks to rapid repatriation support, about 3,000 of the roughly 3,500 Korean nationals on short stays in the UAE returned safely."
Kang, shortly after taking office, had visited the UAE several times as a presidential special envoy to discuss defense industry cooperation between the two countries. He said, "Through this visit, we once again confirmed that the two countries, as special strategic partners, are true friends who help each other in difficult times," adding, "Based on the UAE's resilience and leadership, once the Middle East situation normalizes, both countries deeply agreed that bilateral relations will develop further than before."