Korea Oil Corporation Finds a Large-Sized Oil Field

Korea Oil Corporation (KOC) announced on the 23rd that it found a large oil field in 15-1 area in Vietnam, which it has developed from September in 1998.

On the same day, KOC had a celebration ceremony for the success of the Korea-Vietnam cooperation at Hilton Hotel with the presence of President Kim Dae-Jung and the Leader of Vietnam, Chun Duc-Ryung.

KOC estimated that the 15-1 field with 420 million barrels of oil will bring around 800 million dollars (1trillion and 40 billion Won) in profit without the invested sum. This project will start in 2003 with the participation of KOC (14.25 percent), Korea SK(9percent).U.S. Konoco(23.25 percent), French Geopetrolum(3.5 percent) and Vietnam Oil Corporation(50 percent).

KOC expect that the profit from the Vietnam Oil project for Korea will reach 1.1 billion dollars, including the natural gas found in 11-2 field.

KOC and SK are expecting to have priority in importing a total amount of daily produced crude oil and to import 200 thousand barrels, 10 percent of domestic oil supply, from Vietnam. If this is the case, we can reduce the rate of our dependence on the Middle East which currently reaches 77 percent.

kkh@donga.com