East Sea gas field development relaunched with BP participation

The East Sea deepsea gas field development project is being pushed forward again after securing British energy company BP as a partner. This project is one that explores and develops oil and natural gas in the area of the 61 block east of Pohang and the East Sea Block 8, and was formerly called the 'Daewangbore' project. According to the Ministry of Trade, Industry and Energy, Korea National Oil Corporation selected BP last month as the preferred negotiator for joint development, and is currently discussing detailed contract terms. Although the corporation had previously faced uncertainty over whether to continue the project because its first exploratory drilling failed to find reserves that could prove economic viability, it later changed the project structure to share risks with overseas companies and carried out an international bidding process. According to the article, as tensions in the Middle East raise the importance of energy security, the government is also in the mood to reconsider the strategic value of this project. If the final contract with BP is signed, additional exploration and development work is likely to follow.