South Korea to Purchase Oil from Kazakhstan

This was announced by the country’s Minister of Industry, Kim Jung-kwan, in an interview with the KBS television channel.

"Significant progress has been reached, so we will be able to announce specific volumes and details as early as the beginning of next week," the Minister reported.

South Korea is almost entirely dependent on energy imports, with approximately 70% of its oil sourced from the Middle East. Disruptions in shipping through the straits have placed the country in an extremely vulnerable position.

South Korea consumes about 2.5 million barrels of oil per day. The situation is further aggravated by the fact that not only oil, but also helium—critical for semiconductor production—reaches the country via the Strait of Hormuz. A shortage of naphtha has caused issues in the production of polyethylene, medical solutions, packaging, and syringes. At the end of March, the national currency—the won—collapsed to a 17-year low, crossing the mark of 1,530 won per dollar.

Earlier, the Chief of the Presidential Staff, Kang Hoon-sik, along with Minister Kim, personally visited Kazakhstan to negotiate supplies of crude oil and naphtha. The South Korean delegation also visited Oman and Saudi Arabia as part of large-scale efforts to diversify energy imports.

There is already experience with large-scale supplies between the two nations: in 2023, following the imposition of sanctions against Russia, approximately 34.5 million barrels of Kazakhstani oil entered the South Korean market. The Korea National Oil Corporation has been operating in the Kazakhstani market for several years and owns three fields: Ada, Arystan, and Kulzhan.

"Kazakhstan may seem very far away, but in fact, delivery takes roughly the same amount of time as from the US - about 50 - 60 days," Minister Kim noted, adding that the visit to Kazakhstan was focused on long-term supply diversification.

Simultaneously, Japan has also announced its intention to switch to Kazakhstani oil against the backdrop of the functional blockade of the Strait of Hormuz. Thus, Kazakhstan is transforming into one of the key alternative energy suppliers for the entire Asia-Pacific region.