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First drilling of Korea's Great Whale Project a bust

Published: 06 Feb. 2025, 17:00

JIN EUN-SOO
[email protected]

Drillship West Capella, which conducted the first drilling of Korea's Great Whale Project [KOREA NATIONAL OIL CORPORATION]

Great Whale Project, the first part of Korea's ambitious project of finding a potential 14 billion barrels of oil and gas reserves off the country's east coast, was found to have not enough economic value to warrant further investigation.

The first drilling of the project found that the level of hydrocarbon saturation wasn't enough to make the area into a gas field.

“There is low possibility of making more investigation into the Great Whale Project,” said a senior official at the Industry Ministry on Thursday.

“But we have found some positive signs as well. We cautiously determine that, in terms of geological aspects, the remaining six locations have a slightly higher possibility.”

The Great Whale Project aims to explore one of seven potential locations of the country's deep-sea gas field development initiative off the east coast, which began last year after a surprise announcement by the now-impeached President Yoon Suk Yeol.

The first drilling, which began in December by drillship West Capella, was conducted for 47 days.

Although the Great Whale Project has effectively come to a suspension, the senior official said the investigation had found some hopeful signs for the remaining six locations.

“The exploration found that the structure of cap rock, reservoir rock and porosity was better than what we've previously estimated,” the official said.

“The data obtained from this exploration could help in adjusting errors when continuing on with the rest of six locations.”

The most hopeful scenario would be if the origin of hydrocarbon detected in the area of the Great Whale Project, though insufficient, had come from what's called a “source rock,” which is a quintessential part of a gas and oil reserve.

The opposite case would be if the sign of hydrocarbon originated from oxidation of random organic matter, according to the senior official.

The Ministry of Trade, Industry and Energy plans to proceed with in-depth analysis of the data obtained from the first drilling with an extract contractor.

The result of the in-depth analysis will be available in August, but the government plans to announce an interim result in May.

Exploration of the remaining six locations on the east coast will proceed with investment from foreign companies.

The ministry will start receiving applications from March, but the senior official said several major companies have already showed their interest in the project.

“I believe that investigating potential locations and confirming it is better for the sake of maintaining the ecosystem of resource development in the country,” the senior official said.

“After thorough evaluation of investment conditions, the need for the government funds and the public's opinion, we will proceed with the investments.”

The Great Whale Project initiated from Yoon's surprise announcement last year that the country's east coast harbored a potential 14 billion barrels of oil and gas.

It soon was mired in controversy when the credibility of the consulting firm Act-Geo, which had found the potential, was questioned.

Korea's parliament, in December, also cut off 50 billion won ($34.5 million) of the state budget which had originally been allocated for the project.

The first drilling of the Great Whale Project is known to have been entirely covered by the Korean National Oil Corporation that oversees the project.

BY JIN EUN-SOO [[email protected]]