The international bidding process to find overseas corporations to participate in the East Sea deep-sea gas development project, known as the "Blue Whale" project, promoted by the Yoon Suk-yeol administration, will conclude on the 20th. Amid discussions about the sustainability of the project following the launch of the Lee Jae-myung administration, there are observations that the bidding deadline may be extended.

According to the government and the resource development industry on the 15th, the Korea National Oil Corporation (KNOC) will close international bidding to find overseas business partners to participate in the second exploration drilling phase of the Blue Whale gas field on the 20th. Proposal evaluations are scheduled to be completed by the 4th of next month, and a preferred negotiation partner will be selected in July for detailed negotiations.

On December 20th last year, the exploration vessel 'West Capella' for the East Sea deep-sea gas oil development project named Blue Whale is floating off the coast of Pohang, Gyeongbuk. /News1

However, considering that the regime change has just occurred, the industry anticipates that overseas corporations are likely to request an extension of the bidding deadline to confirm their willingness to continue with the project. In fact, the bidding announcement includes a clause stating that the Korea National Oil Corporation (KNOC) may accept deadline extensions upon request from corporations.

Previously, the Korea National Oil Corporation (KNOC) conducted the first exploratory drilling alone at the "Blue Whale" site, which garnered the most attention among seven promising structures, from December of last year to February of this year. While the oil system structure was confirmed to be sound, it concluded that it did not meet the level required for development as an economically viable gas field. Accordingly, the company has decided to relocate the drilling position to other promising structures to continue additional work.

The Korea National Oil Corporation (KNOC) plans to attract investments of up to 49% of the project's equity to minimize its own capital input and collaborate with overseas corporations with abundant deep-sea development experience. Since starting the bidding process on March 20th, more than 10 corporations, including renowned overseas oil corporations, have shown interest by reviewing the Korea National Oil Corporation (KNOC)'s exploration data.

However, as the ruling Democratic Party of Korea criticized this project as a "scam" after the presidential election, there is also a possibility that overseas corporations may demand a statement from the government to confirm its commitment to the project's continuation in light of political risk. The Lee Jae-myung administration has not clarified its position regarding this project since its launch on the 4th.