South Korea Oil and Gas Industry Update Quarter 1 2012

  • November 2013
  • -
  • Business Monitor International
  • -
  • 95 pages

BMI View:

Renewed domestic exploration efforts may prove to be a false dawn for the Korean upstream segment, but IOC partners are hopeful of enlarging the country's very modest resource base. Meanwhile, LNG is set to play a still greater part in the energy picture, leading to the fresh import deals and possible terminal expansion.
The main trends and developments we highlight for the South Korean Oil and Gas segment are:
- South Korea's Daewoo International and STX Energy have been awarded the right to explore in the central and southern section of Block 6-1 off the east coast of the Korean Peninsula, according to a statement from Ministry of Knowledge Economy. The industry players are the first two privately owned South Korean industry players to win exploration rights in the country. They plan to start exploration in 2012, although no details of the exploration plan have been released. The southern part of Block 6-1 has been producing 0.6bn cubic metres (bcm) of gas per year from the Donghae-1 field since 2004. The field holds total estimated deposits of 7.5bcm.
- Daewoo and STX are joining Australia's Woodside Petroleum in the hunt for oil and gas off Korea's east coast. Woodside planned to start drilling its first wildcat well in the country in October 2011. Woodside take over d a 50% stake in blocks 8 and 6-1N alongside Korea National Oil Corporation (KNOC) in 2007, and has said that it will invest at least US Dollar 20mn in exploring the blocks. The industry player decided to go ahead with the wildcat well after a seismic survey of the Ulleung Basin prospect showed promising results. In August 2009 a government official told national newspaper Joongang Daily that detailed analysis of the data collected indicated a 'good chance' of a commercial discovery off the east coast.
- Apart from a minor producing field, the country is wholly reliant on liquefied natural gas (LNG) imports for its gas needs. The country has discussed piping gas from Russia, but we see the political risks as being too high for the pipeline to be built through North Korea. Furthermore the technical and financial risks are too high for a subsea pipeline to built. We projection gas consumption of 48.9bcm by 2015, almost entirely in the form of LNG imports.
Our oil demand growth hypothesis s are cautious, averaging less than 1% per year through to 2016 before stagnating as fuel substitution and energy-saving measures put the brakes on consumption. The economy relied on oil for an estimated 42.5% of its energy demand in 2010, and the government is planning to reduce that share to 35% by 2030. We are projecting oil consumption of 2.37mn barrels per day (b/d) by 2016.
South Korean oil imports are set to remain around 2.25-2.35mn b/d over the next five years, costing an estimated US Dollar 83.5bn in 2011, falling to US Dollar 79.8bn by 2016. We are projecting gas consumption of 48.9bcm by 2016, implying import costs of US Dollar 22.5bn – taking total petroleum import expenses to approximately US Dollar 102.4bn for that year.
We assume an OPEC basket oil price for 2011 of US Dollar 101.90 per barrel (bbl), falling to US Dollar 99.40/bbl in 2012. Global Gross Domestic Product in 2011 is projection at 3.2%, down from 4.3% in 2010, reflecting slowing growth in China, a faltering recovery in the US and a worsening eurozone debt crisis. For 2012, growth is put at 3.6%.

Table Of Contents

BMI Market View ........... 5
Industry SWOT Analysis 7
South Korea Oil and Gas SWOT ........... 7
World Energy Industry Outlook ........ 8
Data : World Oil Consumption, 000b/d, from 2008 to 2015 .......... 11
Data : World Oil Production, 000b/d 12
Regional Energy Industry Outlook .. 14
Oil Supply 14
Data : Oil Production, from 2009 to 2016 ...... 14
Oil Demand.............. 15
Data : Oil Consumption, from 2009 to 2016 ... 15
Oil: Downstream ..... 16
Data : Refining Capacity, from 2009 to 2016 . 16
Gas Supply ............... 17
Data : Gas Production, from 2009 to 2016 ..... 17
Gas Demand ............ 18
Data : Gas Consumption, from 2009 to 2016 . 18
Liquefied Natural Gas.............. 19
Data : Gas Exports (bcm), from 2009 to 2016 19
South Korea Energy Industry Overview ......... 20

Market Projection Scenario ........... 21
Data : South Korea Oil and Gas - Historical Data And Projections ........ 21
Oil And Gas Reserves .............. 23
Oil Supply And Demand...... 23
Gas Supply And Demand .... 24
LNG .... 25
Refining And Oil Products Trade ........ 26
Revenues/Import Costs ....... 26
Key Risks To BMI's Projection Scenario ............... 26
Oil And Gas Infrastructure ............ 27
Oil Refineries ........... 27
Data : Refineries In South Korea ........ 27
Service Stations ... 27
Oil Storage .......... 27
LNG Terminals ... 28
Data : LNG Terminals In South Korea ............... 28
Gas Storage ........ 28
Gas Pipelines ...... 29
Regional and Country Risk/Reward Ratings ............... 30
Asia Pacific Region .. 30
Regional Risk/Rewards Ratings .......... 30
Data : Regional Composite Risk/Reward Rating 30
Regional Upstream Risks/Rewards ..... 31
Data : Regional Upstream Risk/Reward Rating . 31
South Korea Upstream Rating - Overview ......... 32
South Korea Upstream Rating - Rewards .......... 32
South Korea Upstream Rating - Risks 32
Regional Downstream Risks/Rewards. 33
Data : Regional Downstream Risk/Reward Rating ............. 33
South Korea Downstream Rating - Overview ..... 33

Competition Overview 34
Executive Summary .. 34
Data : Key Players - South Korean Oil And Gas Segment .... 35
Overview/State Role ............ 35
Government Policy ............. 35
International Energy Relations ........... 37
Data : Key Upstream Player ............... 40
Data : Key Downstream Players ........ 40
Company Monitor .......... 41
Korea National Oil Corporation (KNOC) ............... 41
Korea Gas (Kogas) .. 44
SK Energy 46
Market Position .. 47
Strategy ............... 47
GS Caltex - Summary ......... 49
S-Oil - Summary . 49
Hyundai Oilbank - Summary .............. 49
Woodside Petroleum - Summary ........ 50
POSCO - Summary ............ 50
Daewoo International - Summary ...... 51

Additionnal data : Oil And Gas Long-Term Projections ............ 52
Regional Oil Demand .............. 52
Data : Oil Consumption Long-Term Projections ... 52
Regional Oil Supply . 53
Data : Oil Production, 000b/d Long-Term projections .......... 53
Regional Refining Capacity ..... 54
Data : Refining Capacity Long-Term Projections . 54
Regional Gas Demand ............. 55
Data : Gas Consumption Long-Term projections ... 55
Regional Gas Supply 56
Data : Gas Production Long-Term projections ...... 56
Methodology And Risks To Projections ......... 57
Glossary Of Terms ........ 58
Oil And Gas Risk/Reward Ratings Methodology ........ 59
Ratings Overview ..... 59
Data : BMI's Oil and Gas Business Environment Ratings - Structure ... 60
Indicators . 60
Data : BMI's Oil and Gas Upstream Ratings - Methodology ............... 60
Data : BMI's Oil and Gas Business Environment Downstream Ratings - Methodology ........ 61
BMI Methodology .......... 63
How We Generate Our Market Projections .............. 63
Energy Market ....... 63
Cross checks ............ 64
Sources .... 64

View This Report »

Find all the market research you need - instantly, in one place.

+1.2 Million Research Documents & Statistics +200,000 Trusted Public Sources 350 Industries With Global Coverage

24/7 Customer Support

Talk to Clare

+1 339 368 6001

Purchase Reports From Reputable Market Research Publishers

Transportation Forecast: Medium and Heavy Duty Vehicles

Transportation Forecast: Medium and Heavy Duty Vehicles

  • $ 6 500
  • Industry report
  • June 2014
  • by Navigant Research

Medium and Heavy Duty Hybrid Electric, Plug-In Hybrid Electric, Battery Electric, Natural Gas, Propane Autogas, Fuel Cell, and Conventional Vehicles: Global Market Forecasts, 2014-2035 The global medium ...

Transportation Forecast: Global Fuel Consumption

Transportation Forecast: Global Fuel Consumption

  • $ 6 500
  • Industry report
  • July 2014
  • by Navigant Research

Road Transportation Sector Consumption of Gasoline, Diesel, Biofuels, Natural Gas, Liquefied Petroleum Gas, Electricity, and Hydrogen: Global Market Forecasts, 2014-2035 Reducing the transportation sector's ...

Analysis of the Southeast Asia and Australia-New Zealand Process Safety Systems Market

Analysis of the Southeast Asia and Australia-New Zealand Process Safety Systems Market

  • $ 6 000
  • Industry report
  • July 2014
  • by Frost & Sullivan

Mandatory Regulations Will Drive the Uptake of Safety Systems This research service analyzes the safety systems used in process industries in Southeast Asia and Australia-New Zealand. End users include ...


ReportLinker is an award-winning market research solution that finds, filters and organizes the latest industry data so you get all the market research you need - quickly, in one place.