Blue House tackles 'most urgent task' by securing 273 million barrels of crude oil, 2.1 millions ton of naphtha

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Blue House tackles 'most urgent task' by securing 273 million barrels of crude oil, 2.1 millions ton of naphtha

Kang Hoon-sik, the presidential chief of staff, center, takes questions from reporters during a press briefing on the outcome of his four-country trip as a special envoy to Kazakhstan, Oman, Saudi Arabia and Qatar at the Blue House in central Seoul on April 15. [NEWS1]

Kang Hoon-sik, the presidential chief of staff, center, takes questions from reporters during a press briefing on the outcome of his four-country trip as a special envoy to Kazakhstan, Oman, Saudi Arabia and Qatar at the Blue House in central Seoul on April 15. [NEWS1]

 
Korea secured 273 million barrels of crude oil and 2.1 million tons of naphtha, Blue House chief of staff Kang Hoon-sik said on Wednesday after returning from an eight-day trip to Oman, Saudi Arabia, Qatar and Kazakhstan to secure alternative supplies amid the Middle East conflict.
 
On Tuesday, Kang returned from his visit, for which he served as President Lee Jae Myung's special envoy for strategic economic cooperation in an effort to secure additional crude oil and naphtha supplies — what he called "the most urgent task for overcoming the economic emergency" caused by the Iran war.
 
"We have confirmed the import of 273 million barrels of crude oil by the end of this year," Kang said in a press briefing at the Blue House in Seoul. Based on last year's figures, the 273 million barrels are enough for the country to last more than three months "under normal operating conditions without the need for separate emergency measures."
 
Korea has also secured up to "an additional 2.1 million tons of naphtha by the end of the year," approximately one month's worth of imports based on last year's figures.
 

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Korea has been seeking alternative supply routes following U.S.-Israeli strikes on Iran in late February, which led to a blockade of the Strait of Hormuz.
 
The Korean economy is highly dependent on Hormuz, a global oil chokepoint, as it is responsible for 61 percent of the country's crude oil imports and 54 percent of its naphtha imports last year.
 
Kang Hoon-sik, the presidential chief of staff, arrives at Incheon International Airport on April 14 after an eight-day trip to Kazakhstan, Oman, Saudi Arabia and Qatar. [YONHAP]

Kang Hoon-sik, the presidential chief of staff, arrives at Incheon International Airport on April 14 after an eight-day trip to Kazakhstan, Oman, Saudi Arabia and Qatar. [YONHAP]

 
During the trip, Kang conveyed personal letters from Lee and established high-level consultation channels with major oil-producing Gulf nations amid continued tensions in the Middle East. Though the United States and Iran have reached a two-week cease-fire agreement, the two sides have struggled to finalize a peace deal. 
 
"In the personal letters delivered to each country, President Lee conveyed his deep concern over the ongoing war in the Middle East and his sincere condolences [to those affected] and [highlighted] the solidarity between our people while also expressing his hopes to overcome the energy security crisis through collective wisdom," Kang said.
 
Kang helmed a delegation comprising officials from the Ministry of Trade, Industry and Resources and the Ministry of Foreign Affairs, as well as representatives from the state-run Korea National Oil Corporation and major energy companies
 
The delegation secured pledges for the supply of 18 million barrels of crude oil from Kazakhstan; 5 million barrels of crude oil and 1.6 million tons of naphtha from Oman; and 250 million barrels of crude oil and 500,000 tons of naphtha from Saudi Arabia.
 
"We formulated negotiation strategies together with companies that import oil and naphtha and divided roles between ourselves to achieve results," Kang said. "The crude oil and naphtha volumes secured this time are scheduled to be imported through alternative supply lines unrelated to the blockade of the Strait of Hormuz."
 
Presidential chief of staff Kang Hoon-sik, left, shakes hands with Kazakh President Kassym-Jomart Tokayev in Kazakhstan on April 8. Kang visited the Central Asian country as President Lee Jae Myung's special envoy as part of a three-nation tour and discussed boosting cooperation in energy, transport and logistics during the meeting with the Kazakh leader. [BLUE HOUSE]

Presidential chief of staff Kang Hoon-sik, left, shakes hands with Kazakh President Kassym-Jomart Tokayev in Kazakhstan on April 8. Kang visited the Central Asian country as President Lee Jae Myung's special envoy as part of a three-nation tour and discussed boosting cooperation in energy, transport and logistics during the meeting with the Kazakh leader. [BLUE HOUSE]

 
In Kazakhstan, the world's 12th largest crude oil producer, Kang paid a courtesy call on Kazakh President Kassym-Jomart Tokayev and delivered a personal letter from Lee. Tokayev, in turn, designated an official to oversee strategic economic cooperation with Korea.
 
Kang also met with Oman's Deputy Prime Minister for Economic Affairs and Crown Prince Sayyid Theyazin bin Haitham Al Said and requested his interest and support regarding the safety of 26 Korean-linked vessels stranded near the Strait of Hormuz. Oman is strategically located outside the direct impact zone of a blockade due to its access to the Indian Ocean.
 
In Saudi Arabia, Korea's largest crude oil supplier, Kang met with Foreign Minister Faisal bin Farhan Al-Saud and Energy Minister Prince Abdulaziz bin Salman Al-Saud and secured a pledge that 50 million barrels of crude oil — the shipment status of which had previously been uncertain — would be shipped through alternative ports in the Red Sea sometime this month or in May.
 
"Saudi Arabia promised to prioritize supply to Korea so that we would not face shortages of crude oil and naphtha," Kang said.
 
A trip to Qatar, a country not originally on the itinerary, was arranged through on-site coordination after news of the U.S.-Iran cease-fire agreement was announced in the early hours of April 8.
 
Kang's delegation paid a courtesy call to Qatar's Emir Sheikh Tamim bin Hamad Al Thani, who said Korea is a "top priority" regarding an export contract for liquefied natural gas (LNG).
 
This comes after reports that Qatar had declared force majeure on its long-term LNG supply contract with Korea and other countries.
 
Last month, Kang visited the United Arab Emirates as a presidential special envoy and stated afterward that a total of 24 million barrels of crude oil had been secured from the Gulf nation through his visit.

BY SARAH KIM [[email protected]]
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