Seoul launches underwater gas exploration project

SEOUL, Sept. 22 (Yonhap) -- The government on Thursday began a search for new gas and oil reserves in waters off the country's east coast, awarding the US$130 million project to two separate consortiums that include private companies.
The project aims to drill two exploratory holes in the country's 6-1 offshore block in the East Sea, where the country is already producing some 1,000 tons of natural gas per day, an equivalent to the daily consumption of 340,000 households, according to the Ministry of Knowledge Economy.
The ministry said the two sites to be checked may each hold up to 10 million tons of natural gas.
Under the project, Daewoo International Corp., a private trading firm, and the state-run Korea National Oil Corp. (KNOC) will drill exploratory holes in the southern part of the 6-1 mine in the next four years, investing $70 million.
The KNOC and another private firm STX Energy will drill an exploratory hole in the central part of the block, spending $60 million, according to the ministry.
"With the participation of private expert companies, Daewoo International and STX Energy, the government expects to find second and third gas fields in the East Sea," the ministry said.
The country has so far drilled 44 exploratory holes within its continental shelf.
bdk@yna.co.kr
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