ID :
204084
Mon, 08/29/2011 - 07:11
Auther :
Shortlink :
https://oananews.org//node/204084
The shortlink copeid
Private firms allowed to explore continental shelf
Private firms allowed to explore continental shelf
SEOUL, Aug. 29 (Yonhap) -- The government said Monday that it gave two private companies the right to search for natural gas on a continental shelf off the country's southeastern coast.
The move marks the first time that privately-owned local companies have been given development rights to an offshore resource block, the Ministry of Knowledge Economy said.
In the central part of the block 6-1, STX Energy will join forces with state-run Korea National Oil Corp. (KNOC) to search and drill for natural gas. STX will hold a 30 percent stake in the exploration project although it will share operational rights with KNOC.
The ministry also said Daewoo International Corp., a trading company and energy developer controlled by South Korean steel giant POSCO, will work with the KNOC to explore gas in the southern part of the block 6-1, close to the operational Donghae-1 gas field.
Daewoo will control a 70 percent stake and have managerial rights over the development.
The ministry, which is in charge of the country's industrial and energy policies, said allowing private companies to explore the country's continental shelf represents a new chapter in Seoul's efforts to seek natural resources at home.
The two companies will be permitted to search for gas until Aug. 2019 and allowed to produce any resources found for 30 years.
The last time a private company was involved in offshore development was in the early 1990s when Britain's Kirkland Resources sought oil in the East Sea. The company pulled out in 1994 after not finding meaningful deposits.
Afterwards, only the KNOC had been authorized to explore the country's continental shelf. At present 44 drilling explorations have taken place with one commercially viable field being found in 1998.
The Donghae-1 field has been producing 60 million cubic feet of gas per day since 2004, which is enough to meet the energy demand of 80,000 households.
Besides the block 6-1 projects, Australia's Woodside Energy Ltd. will search for oil and gas in block-8 in the East Sea along with the KNOC.
Drilling is expected to begin in November at the depth of 1,800 meters. The area to be checked is located north of block 6-1 and northeast of the industrial city of Pohang, 374 kilometers southeast of Seoul.
yonngong@yna.co.kr
(END)
SEOUL, Aug. 29 (Yonhap) -- The government said Monday that it gave two private companies the right to search for natural gas on a continental shelf off the country's southeastern coast.
The move marks the first time that privately-owned local companies have been given development rights to an offshore resource block, the Ministry of Knowledge Economy said.
In the central part of the block 6-1, STX Energy will join forces with state-run Korea National Oil Corp. (KNOC) to search and drill for natural gas. STX will hold a 30 percent stake in the exploration project although it will share operational rights with KNOC.
The ministry also said Daewoo International Corp., a trading company and energy developer controlled by South Korean steel giant POSCO, will work with the KNOC to explore gas in the southern part of the block 6-1, close to the operational Donghae-1 gas field.
Daewoo will control a 70 percent stake and have managerial rights over the development.
The ministry, which is in charge of the country's industrial and energy policies, said allowing private companies to explore the country's continental shelf represents a new chapter in Seoul's efforts to seek natural resources at home.
The two companies will be permitted to search for gas until Aug. 2019 and allowed to produce any resources found for 30 years.
The last time a private company was involved in offshore development was in the early 1990s when Britain's Kirkland Resources sought oil in the East Sea. The company pulled out in 1994 after not finding meaningful deposits.
Afterwards, only the KNOC had been authorized to explore the country's continental shelf. At present 44 drilling explorations have taken place with one commercially viable field being found in 1998.
The Donghae-1 field has been producing 60 million cubic feet of gas per day since 2004, which is enough to meet the energy demand of 80,000 households.
Besides the block 6-1 projects, Australia's Woodside Energy Ltd. will search for oil and gas in block-8 in the East Sea along with the KNOC.
Drilling is expected to begin in November at the depth of 1,800 meters. The area to be checked is located north of block 6-1 and northeast of the industrial city of Pohang, 374 kilometers southeast of Seoul.
yonngong@yna.co.kr
(END)
