State-run Korea National Oil Corporation (KNOC) published on Sunday that several multinational energy firms filed letters of intent by the deadline on Sunday, resuscitating the campaign shunned by local companies due to association with former disgraced president Yoon Suk Yeol.
BP did not respond to requests for comment. KNOC declined to disclose the names of the bidders. ExxonMobil, also seen as a potential candidate, could not be reached. A preferred bidder will be selected in October.
The renewed interest comes after the much-hyped "Blue Whale" structure off Yeongil Bay in Pohang disappointed earlier this year. Analysis by Core Laboratories found gas saturation levels of just 6.3 percent in February, far below the 70 percent threshold for viable commercial recovery.
The discovery was originally trumpeted by then-President Yoon Suk Yeol in June 2024, who claimed the reserves could be worth up to $29 billion. His successor, President Lee Jae-myung, denounced the project as a "scam," citing its lack of economic feasibility.
But foreign interest has breathed new life into the project. KNOC relaunched its tender after relinquishing rights to exploration Blocks 6-1 and 8, extending the bidding deadline from June to September to attract more suitors.
"Foreign big names like BP wouldn't have joined out of charity — they must have conducted their own research," said Jun Hyung-gu, geology professor at Kyungpook National University.
The winning bidder could take up to a 49 percent stake in the venture, as debt-burdened KNOC seeks foreign capital and expertise to push ahead with Phase 2 exploration.
Energy experts say BP's global experience in fast-tracking deep-sea oil and gas projects into production could prove critical in assessing whether hydrocarbons bypassed the Blue Whale structure and accumulated elsewhere in the basin.
"KNOC must approach resource development with a long-term perspective, beyond political cycles," Jun added.
Still, skepticism remains. "Foreign firms with long exploration histories will certainly add value, but the odds of striking commercially viable gas remain slim. It's premature to predict drilling outcomes," said Kim Do-hyun, analyst at Kiwoom Securities.
reporter
Kim Dong-young
davekim0807@ajupress.com
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