The Blue Whale deep-sea gas prospect in the East Sea, named '대왕고래', has been deemed economically unviable based on exploratory drilling results, leading to increased interest in the future procedures of the Ministry of Trade, Industry and Energy and Korea National Oil Corporation (KNOC). The Ministry and KNOC plan to soon initiate a second round of exploratory drilling on other promising structures regardless of the results of this first exploratory drilling. From the second exploratory drilling onwards, they will proceed with joint development by attracting investments from large overseas oil corporations.
According to the Ministry and KNOC, drilling operations on the Blue Whale prospect, which began on Dec. 20 last year, concluded on the 4th. The government assessed that the likelihood of finding commercially viable quantities of oil or gas in the Blue Whale prospect is low and decided to pursue exploration of other promising structures from the second drilling onward.
The target structure for the second drilling has not been confirmed. Previously, the government discovered seven promising structures in the East Sea area and named them after marine creatures such as the Blue Whale, squid, and pollock. Among them, the first drilling area was the Blue Whale, and six promising structures remain.
KNOC self-financed approximately 100 billion won used in the first exploratory drilling. From the second exploratory drilling onward, they will attract investments from large overseas oil corporations for joint development. A KNOC official noted, "Preparations are underway for the investment attraction process targeting global corporations that have the capital, technology, and experience necessary for deep-sea development to begin in earnest. We plan to issue the investment bidding announcement by the end of March at the latest."
The Blue Whale prospect, which was the subject of the first exploratory drilling, was confirmed to have a 'trap' structure that could potentially hold oil or gas. However, the gas saturation of hydrocarbons in the strata was insufficient to be deemed economically viable.
Considering that the success rate of the exploratory drilling is about 20%, meaningful results might still emerge from the remaining promising structures. KNOC plans to conduct precise analysis of the verification data and samples acquired during this first drilling process over a period of approximately six months by sending them to a specialized service company, distinct from 'ACT-Geo' which indicated the deep-sea gas field potential in the East Sea. The precise analysis is expected to conclude after August, but the government and KNOC plan to announce preliminary analysis results around May to June. A Ministry official stated, "Based on the data secured this time, we will further increase the success rate from the second drilling onward."
Previously, the government and KNOC revealed that ACT-Geo's analysis indicated the possibility of 3.5 billion to 14 billion barrels (Bbl) of oil and gas being located in the deep sea around the Ulleung Basin of the East Sea. This quantity could supply natural gas for up to 29 years and oil for more than four years based on domestic consumption.
Dr. Vitor Abreu of ACT-Geo, who analyzed the potential of deep-sea gas fields in the East Sea, stated, "The only way to actually prove (the presence of gas and oil) is through drilling. We have identified factors that could indicate potential presence, but it is impossible to eliminate all risks without drilling. The last remaining method now is drilling."