The so-called "Blue Whale" deep-sea gas field development project in the East Sea has been deemed "not economically viable" based on the initial exploration drilling results, leading to a sharp decline in related stocks on the domestic market on the 7th.

On the 20th, fishermen from Gyunghangpo in Pohang, North Gyeongsang Province, are holding a maritime protest demanding compensation for fishing grounds in front of the drilling ship West Capella at the sea off Pohang, the site of the first drilling operation for the Blue Whale offshore gas and oil development project. /Courtesy of News1

As of 9:34 a.m. on the same day, Korea Gas Corporation is trading at 30,900 won, down 12.83% (4,550 won) compared to the previous trading day in the securities market. Tongyang Steel Pipe also fell more than 10%, and GS Global and KEPCO Industrial are reporting declines in the 6% range.

In the KOSDAQ market, HS Valve is currently down 14.38% (1,370 won), recording 8,160 won compared to the previous trading day.

Although not directly related to oil drilling, asphalt manufacturer Korea Oil and Hung-gu Oil, which had been tied to the "Blue Whale" theme stocks, are also experiencing declines.

The stocks of the corporations surged after the government announced in June last year that it would promote the East Sea gas field development project, tying them to theme stocks.

Earlier, on the previous day (6th), the Ministry of Trade, Industry and Energy announced that the drilling work for the "Blue Whale" project, which began on December 20 of last year, ended on the 4th. The government confirmed there were some signs of gas during a briefing on the first drilling results of the Blue Whale project, but stated that the amount was not significant enough to ensure economic viability. Therefore, the government assessed that the likelihood of finding commercially viable quantities of oil or gas in the Blue Whale's promising structure is low, and it decided to explore other promising structures starting from the second drilling.