KNOC Agrees to Introduce Crude Oil from Aramco

President Kim Dong-sub of Korea National Oil Corp. (KNOC), Minister of Trade, Industry and Energy Bang Moon-kyu and Ahmed Al-Qunaini, Aramco’s marketing head, attend a ceremony in which KNOX struck a contract with Aramco to stockpile 5.3 million barrels of crude oil at the Ulsan petroleum storage center on Oct. 23. (Photos: KNOC)

Korea National Oil Corp. (KNOC) struck a deal with Aramco, Saudi Arabia’s state-run petroleum company, to stockpile 5.3 million barrels of crude oil at the Ulsan petroleum storage center amid rising worries over international crude oil prices, caused by geopolitical upheaval in the Middle East, KNOC said on Oct. 23.

Stockpiling the crude oil at the storage center is designed to brace for an energy crisis, such as crude oil supply uncertainties.

Saudi Arabia is Korea’s biggest crude oil exporter. Saudi Arabia’s crude oil accounted for about 33 percent of Korea’s imports as of the end of 2022.

The 5.3 million barrels of crude oil is twice the nation’s daily crude oil imports.

KNOC is known to have established a plan to continuously secure strategic crude oil through partnerships with major petroleum producers in the years to come.

Under the agreement, Saudi Arabia secured an additional crude oil supply center for Asian regional customers through the cooperation with KNOC.

The Ministry of Trade, Industry and Energy said, “The agreement is a successful business model that brings benefits to both companies and it will serve as a good opportunity to further ramp up cooperative ties in the energy sector.”

It is not only more important to introduce large amounts of crude oil from the Middle East in advance, given energy security, caused by international crude oil price fluctuations, but the crude oil is expected to stabilize the petroleum supply situation in Korea.

Dignitaries, including KNOC President Kim Dong-sub, participate in an event to celebrate Vietnam’s Block 15-1’s topping 400 million barrels in cumulative crude oil production.

Vietnam’s Block 15-1, Owned by KNOC, Reaches 400 Million Barrels of Crude Oil Cumulatively

The block, one of two over which Korea National Oil Corp. has exploration rights, has reached 400 million barrels in cumulative crude oil production.

Vietnam’s Block 15-1 topped 400 million barrels in cumulative crude oil production, KNOC said on Sept. 23. KNOC has been participating in the Block 15-1 project since 1998.

Block 15-1 is located off the sea 180 km from Hoh Chi Minh City. KNOC secured the mining rights over the block in cooperation with U.S. oil businessman ConocoPhillips and others by beating out global oil majors in an international bidding in 1994.

Vietnam’s state-run oil company Petrovietnam established Cuulong Joint Operating Company, a joint-venture with multinational partners, including Petrovietnam, to run the block.